Looking to move ahead in your journey as a stock market trader?
Most stock market beginners feel that having a winning trading strategy is a holy grail to wealth, riches, and success in the stock markets.
It’s only after spending years chasing trading systems and jumping methods, realization kicks in, hard.
Maybe it’s the mindset that needs fixing.
Want to move ahead in your journey as a stock market trader?
Lets’ look at the key characteristics that separate the mediocre traders from the successful.
#1 Risk:
“Be brave. Take risks. Nothing can substitute experience.” says Paulo Coelho.
This is so apt in the stock markets too.
Yet it’s only the 1% who think “Risk First.”
Managing risk, finding low-risk entries, exiting losers quickly and ruthlessly, always takes precedence over finding and entering good stocks.
The ones who respect risk are the ones to last the longest and will often be heard laughing their way to the bank.
#2 Consistency:
“Two ingredients that were absolutely crucial for my winnings: consistency and Risk-Management.” ~ @markminervini
Getting rich and achieving financial freedom may be the ultimate goal in the markets, but consistency is a vital ingredient in this mix.
Consistency counts in everything, whether it’s the process, the risk-management, trade execution, or position sizing.
Everything works in the long term, as long as consistency and process exist at all levels in the art of trading.
#3 Process:
Most traders make the mistake of being focused on the outcome than following the process.
Tips from news channels or media, friends’ advice are the go-to sources of stock investments.
By having a zero understanding of when to buy, how much to buy, or risk, how do these tactics work out, in the long run, is anybody’s guess.
How many people do you know who make consistent gains after banking on others for advice?
Becoming capable, independent, and self-sufficient is the key.
Understanding what goes into the process, defining the trading process is how better results get achieved over time.
#4 Being Present:
This is deceptively difficult, yet it’s crucial, to remain in control at all times.
Being present means being completely aware of what’s unfolding and occurring right now, outside and inside.
The markets are always speaking, actions must be aligned and adjusted to the sequence of events playing out.
Instead of trying to know what will happen next, executing and following the plan is what helps to shape and bring about a better outcome.
#5 Long Term Thinking:
Become slow deliberately in order to speed up.
Focus on your bigger vision.
Being deliberate and conscious allows you to connect with the big picture and energizes you to become patient and stay on the course.
Growth happens slowly and often takes much longer than one thinks.
Being slow and focusing far means aligning with a better vision, becoming sharper, and achieving stunning results in the long run.
It’s like planting a Japanese bamboo tree seed.
First five years nothing happens…
Then it breaks ground and it grows. It grows a phenomenal 100 feet in less than 3 months.
Is that kind of exponential and overnight growth is what you’re targetting?
In Conclusion
The process is about doing the right things, at the right time.
By keeping the focus on the process and not the results, growth happens.
Slowly at first.
Persisting in your vision of becoming the best trader may cause you to accomplish and change very fast. Until then large doses of patience are needed.
Momentum only happens when you are well prepared and are in the zone. That’s when things get moving, fast. Remember it’s only when you break the ground with full conviction, will you experience exponential growth.
What strong roots and foundation are you creating as a Stock Market Trader?