Trading is easy. If you think about it, anyone can open a trading account and start placing trades. The hard part is making money and doing it consistently. Further to this point, it appears that only about 10% of traders are able to this: make money on a consistent basis.
So what sets these few traders apart from the majority of traders that are either constantly around break-even, or worse yet, blowing out their accounts? The answer is more apparent than most people think:
- Dedication: understand that trading as an avocation and not a hobby
- Discipline: ability to remove emotion from trading decisions
- Patience: willingness to wait for ideal set-ups and grow account over time
I day trade the futures and commodity markets. I like the leverage available and the potential for significant reward. I am also aware there is inherent risk in what I do, and that if I am not careful, or know what I am doing, that I could also suffer a significant drawdown. For this reason, I treat day trading as a very serious endeavor, and constantly study the markets and refine my techniques to make sure that I am always on top of my game.
This also includes working to control my emotions. As humans, it is quite natural for us to allow emotion to help guide the routine decisions we make on a daily basis. Thoughts like “that looks good or this feels better” may be okay when buying a sandwich or trying on shoes, but can be devastating when trading a fast moving and highly leveraged market. As a result, it is critical to develop a trader’s discipline that helps you non-emotionally assess what is going on in the markets; make precise entry decisions; and mange your trades to maximum benefit.
But perhaps the most import attribute of a successful trader is patience. This comes from knowing that trading is a marathon and not a sprint. Understanding that fortunes are not made overnight, but are carefully built over time. Realizing that every day will bring multiple opportunities to enter the markets. Having the ability to calmly wait for the set-up that has the highest probability for success requires that we bring our three trading skills into play: dedication, discipline, and most of all patience.
Rockwell Trading Shares 3 Keys To Trading Consistency