In trading the markets, there are many things that separate successful traders from those who end up losing money. Knowing what these things are can help you become a better trader, and potentially make more profit in the long run.
Here are fifteen habits that profitable traders exhibit. Learn from them and institute them in your own trading.
A profitable trader analyzes every single closed trade — both winners and losers — to find areas of improvement.
A profitable trader may have different trading resources they use, but they always rely on their own sound reasoning rather than blindly following other trading influencers or signal-callers.
A profitable trader steers clear of the markets when they have certain reservations and doubts.
A profitable trader knows the reward-to-risk ratio of any trade they enter — before they enter.
A profitable trader knows if they have adequate capital to risk in order to realize their objectives.
A profitable trader exhibits self-control and patience, understanding that they don’t need to be in a trade at all times. They know there are stretches of time where they just won’t have a position, simply because their trading plan does not warrant it.
A profitable trader keeps their stop-loss where it is, never widening it on a whim or canceling it altogether.
A profitable trader abides by their stop-loss and cuts their losses — instead of wishing the trade reverses for them.
A profitable trader views each trade as a separate and distinct interaction with the market and analyzes it accordingly.
A profitable trader trades with the trend (for the most part). Pullbacks and countertrend strategies may be traded conservatively, but profitable traders understand that countertrend movement is short-term and fleeting.
A profitable trader lets their profits run until their trading strategy gives them an exit signal.
A profitable trader never chases. They don’t chase the markets. They don’t chase the money they lost in a bad trade. They stay sound and wait for the setups their trading plan dictates.
A profitable trader never overtrades. They stay patient.
A profitable trader becomes a student of the game, hungry for knowledge and always in pursuit of more information to sharpen their game.
A profitable trader analyzes the market and makes calculated decisions. They do not trade on a promise and a prayer.
Image and article originally from www.benzinga.com. Read the original article here.