10 Habits of Highly Effective Trend Traders

10 Habits of Highly Effective Trend Traders

Trading is a performance-based profession. You are putting your wits and skills against the market, which necessarily means that you are competing against other traders. Humans are creatures of habits, and it is these habits that create the results you get in your personal and professional life. Here are ten habits that can lead to you being a consistently profitable trader.

Always be a student
As with any other profession, you must engage in continuing education if you want to remain relevant to the world of commerce. The rules, regulations, technology, who trades and how are constantly changing, and you have to keep up with it all. You must keep learning. Nobody knows everything about trading.

be flexible
One of the most challenging aspects of trading is that you never know what will happen from moment to moment. A famous saying among traders is, “The market can do anything at any time.”

Look at the market and think of all the next moves the market can make. Don’t guess what the market might do, don’t predict what the market might do. Keep your mind flexible so you’re never surprised, and you’ll always be ready for any eventuality, knowing that “the market can do anything at any time.”
One of the foundational tenets of Darwin’s theory of evolution supports this idea – the “survival of the fittest”. Some interpret this to mean “adaptable” survival, meaning that when the environment changes, those who can adapt to it will survive. This is definitely important in the markets. When you change, you have to be flexible enough to change with it.

Be part of a trading community
Trading is a solitary experience for many who trade alone in their home or office. If you are able to self-discipline and focus when you are on your own, it can be an advantage. If you need other people around you to provide accountability and keep you alert, that’s a disadvantage.
If you fall into the latter category, you may want to become part of a trading company, or at least join an online trading chat room.
One of the most fun ways to get involved in a trading community is to join a local trading club where traders gather once a week. Often times, these meetings will have a keynote speaker, a question-and-answer session, an informal discussion, and sometimes even a social networking afterward.

You have realistic expectations
Like many attempts to make money, there is a lot of hype surrounding the world of commerce, especially on the Internet. Individuals and companies are always trying to sell the latest e-book, course, magic indicator or forex robot with outrageous claims of instant and massive profits.

be disciplined
Money is very emotional for most people, and it is easy to get caught up in feelings of fear or greed. Day traders in particular can be more confident and ambitious, over-trading and treating electronic trading like a video game.
Profitable traders are masters of self-control. They are trading less than you think.

work on your mind
Many traders prepare for 1-2 hours each morning before the market opens. They look at the news that came out overnight, and check what the markets in other countries have done while the US markets are closed.

Choose whatever routine works for you, as long as you are calm and focused before you start trading.

Go to work like a pro
One day the traders do not make any preparations before the markets open. They roll out of bed just minutes before opening, go to their home office in their pajamas, and start trading.
Although this may work for some, prepare yourself as if you’re going to work – because you are! Equip yourself as if you were going to a public office, rather than a private home office to put you in the right state of mind to act like a professional, vigilant, and treat your trade like a business.

Review your performance and apply what you have learned
After each trading day, review your daily trade history. Calculate your mistakes, the difference in your net profit for the day if you don’t make any mistakes and then summarize them on the weekly chart. Print your charts, marking each place you entered and exited the trade.
Then, every morning before you start trading, review your daily records from the past several days, and also review your weekly and monthly records to remind yourself of the lessons you learned from the mistakes you made. Also review your printed charts.

You want to keep all of this fresh in your mind so you don’t make the same mistakes in the future.

Focus on mastering trading
Trading is a difficult profession. You can’t just come in, hit the clock, and earn an hourly wage for being there. They don’t pay you for your time. You are only paid for your results and results.
In addition, you are trading the same markets as some of the brightest minds in the world. Wherever there is a lot of money to be made, you will find there are some of the smartest and smartest people in the world. This is certainly true in the trading world.
You cannot take trading lightly. Your goal cannot be to become a “good” trader or to earn enough to live. This level of motivation will not be enough to succeed against intense competition. You must be completely dedicated to mastering the art and science of trading. This is the level you should aim for if you want to be successful.

Live a balanced life
Trading is so much fun. You can make a lot of money from trading. Trading is intellectually stimulating. As you become skilled, there is a state of “flow” that you experience, similar to that of a high runner.
Although focusing on mastering trading is important, you must balance this by not getting so drunk from trading that you sacrifice your health, your family, and other interests. In fact, living a balanced life will help you be a better trader. for example:

  • Having a good and loving family life will help you to have a good state of mind and put you in a good emotional place.

 

  • Good eating, good nutrition, exercise, and taking care of your body will also help with your circulation. Physical discomfort, stagnation and illness are all distractions that can harm your trading performance.

 

  • Maintaining a good spiritual life will also keep you balanced and help you avoid the temptation of greed.

Choose a charity that you strongly believe in and are committed to donating a certain percentage of your earnings to that charity. This can act as a motivation on a spiritual level to help you maintain discipline and success in your trading career.