Being a good trader is about developing certain mental qualities. It is the process of constantly pushing yourself to grow stronger and better.
A profitable trader is not necessarily a good trader. Likewise, a good trader is also not necessarily a profitable one, yet a good trader ultimately finds himself with a much higher probability of being profitable/ of finding success in the long run.
This means that success, with these qualities, become predictable and repeatable.
So what are those qualities then?
In short, detachment, acceptance, wisdom, patience, persistence, discipline…
Here are 14 unmistakable signs that show you possess these qualities
1. You balance discursive thoughts and emotions with mindfulness.
Good traders understand how the content of their thoughts and their relationship with their emotions can influence their trading performance. In an effort to make the best decisions possible and to be constantly on top of their game, they balance and temper thoughts and emotions with moments of genuine mindfulness.
2. You feel confident in your ability to adapt to change.
Change is all around us, not just in the markets; it’s always happening and there’s no controlling it. Good traders know that and they focus on getting better at adapting to change, rather than resisting it.
3. Mistakes, although uncomfortable, make you deeply inquisitive.
You don’t punish yourself and others for them, you understand (deeply) that humans are designed to learn, and we learn by making mistakes. We learn to walk by falling down. If we never fell down, we would never walk. So, good traders take responsibility for their every action in the markets and their focus on growth.
4. You genuinely celebrate other people’s success.
Trading is a tough profession. Losses and drawdowns are challenging periods that cause many to break. Good traders never compare their own results with others. They never try to belittle other follow traders, wishing them to fail. They only display compassion, support, and understanding. They don’t feel as though other people’s success somehow diminishes their own achievements. Losers think like that, and in return, losses and disappointments is what they keep reaping in their lives.
5. You are comfortable trading according to your rules.
Good traders make decisions with relative ease because they understand their rules and what they are trading and looking for in the markets. They do not let other people’s opinions affect their judgment. They’ve learned to trust their own — essentially catching their own fish.
6. You have a thorough understanding of your strategy, its probabilities, and your inherent tolerance to risk.
At this point, trading is not an intellectual game for you anymore. It’s not about learning theories, it’s about experience and practice – which you’ve done enough of. You understand risk, and you know that managing it will not only preserve your capital; it will also protect your emotional well-being.
7. You focus on sharpening your skills, rather than showing them off.
While some people seek validation or recognition from other traders on Social Medias (especially twitter) for the trades they take, good traders are less concerned about gaining recognition. Instead, they’re intrinsically motivated to become better.
8. You view trading losses as opportunities for growth.
Good traders don’t waste time feeling sorry for themselves while giving away their power to the markets. While losses cause some people to grow bitter, they make good traders grow better.
9. Good traders feel good about themselves, whether they win or lose.
Your self-worth depends on who you are, your character and the constant states of mind you inhabit. It is not what you have or haven’t achieved or what people think of you.
10. You practice delayed gratification.
Good traders view their trading goals as a marathon, not a sprint. They’re willing to tolerate short-term pain when it can provide long-term gain.
11. You bounce back from failure.
Good traders don’t view failure as the end of the road. Instead, they use potential failures as opportunities to refocus and gain new knowledge and adopt new behaviors that will increase their chances of success in the future.
12. You express gratitude.
Rather than exclaim they need more, good traders take whatever the markets are offering them in the moment however small the gains are. If they followed their plan to the letter, then what should or could have been doesn’t matter!
13. You focus on what you can control.
Good traders are effective in the markets for the mere reason that they devote their resources to that which they can control – and this does not include controlling the markets but their own behavior.
14. You’re open to learning.
Learning is always an ongoing quest for good traders.
If you didn’t recognize yourself in any of those 14 statements, rest assured, you can develop these qualities in a record period of time. For starters, I suggest reading the following posts: