The Seven Secrets
of the Highly Successful Trader
1. TAKE COMPLETE RESPONSIBILITY
The successful trader knows that every action he takes is his/her action. You will never meet a successful trader who is looking to blame someone or something else for his or her losses.
This is a critical step in understand how to become a successful trader because until you take complete responsibility for all of your trades, you will never feel comfortable with your system and you will never reap the rewards.
Additionally, when something goes wrong with a trade or an investment endeavor, the traders who take complete responsibility for their actions will look at those "failures" as learning experiences.
The trader who takes responsibility will try and determine what went wrong and what needs to be done in order to avoid similar mistakes in the future. The trader who does not take complete responsibility will simply say "the market wasn't right" or "my broker is an idiot".
That trader will likely make the same mistakes again and will never understand why he/she cannot win in the stock market. This step is critical.
Before all else, you must accept everything that you do as your responsibility. The game can only be won out of luck if you don't follow this first step.
2. HAVE A SYSTEM THAT FITS YOU
Every successful trader, investor, money manager, etc. has a system that perfectly fits his or her ideals and personality as an investor. The system really doesn't matter, it's secondary.
Value investors like Warren Buffet have made millions with their value approach. Day traders have made millions with their system.
I have colleagues who have made millions with momentum investing. So it can't be the system per se.
Instead, it's the fact that those winning traders have discovered and developed the system that fits them best.
If you are a very worrisome person who absolutely cannot take losses without getting ulcers then I would not suggest day trading as part of your system.
On the other hand, some investors would go crazy if they had to buy a stock and hold on to it for a year or two.
So how do you find a system that works for you?
You have to work backwards by discovering what your objectives are!
What annual rate of return are you looking for?
Do you want to trade full time or just leisurely?
Would you get stressed with daily gains and daily losses?
Are you extremely patient with your investments?
Do you need to make lots of decisions?
Which trading systems do you know and feel comfortable with?
How much research have you done?
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