Becoming a Winning Trader

By: Lazy Submit
Whether you are involved in futures trading, forex trading or stock trading you'll will find that some traders consistently win while others can't seem to help losing. What is the difference between the few traders who succeed and the many who don't?

Is it access to better "secret" systems? No, there are a number of excellent books that outline systems that others have found to work, but ordinary traders still lose with them. Is it better market information? No, thanks to the Internet, the ordinary person now has access to the same data as huge financial institutions. Is it background and education? No, successful traders have come from all walks of life, with education levels ranging from grade school to PhD. Ultimately, the only real difference is mental attitude.

In ordinary life, people can bluff their way through and cling to fondly cherished illusions. Sometimes this convinces people and they can attain a measure of success. Not so in the markets.

In trading, the market will immediately expose any errors in your thinking, and this will be expensive. So it makes sense to model your thinking after those who have won in the game of trading. Here are some of the mental qualities that are common to successful traders:

• They take responsibility for their own decisions. They don't rely on tips, blindly follow market letters, or rely on their brokers.

• They gain knowledge about the market. The winner is constantly learning, both from successes and mistakes, but also by reading and doing their own research.

• They focus on following the market rather than fighting it. The market goes where it wants to, and can't be controlled. They focus on identifying where it is going and controlling entry and exit points.

• They carefully manage their trading risk by setting stop losses and exiting trades that don't go as expected.

• They have a winning system and stick to it. They have carefully tested their system against a variety of market conditions and can be confident about using it, even when there is the occasional loss.

• They understand their mental makeup and strengths and weaknesses. They chose a trading style that harmonises with their personality. They have worked through major personal issues and have attained personal peace.

• They love what they do. Money is secondary to the fun of playing the game and is used to keep score, but is not an end to itself..

Top traders have adopted a set of attitudes and behaviours. Why not start to share their attitudes, think the same way and join them at the top!

For free articles about forex trading, futures trading, options trading and stock trading, and free trading tutorials to help you become a winning trader, visit My Trading Help.

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Based in Australia, John Locke is a trader with more than 20 years experience trading stocks, futures and forex. He can be contacted at My Trading Help