To be successful, you must approach trading as a full- or part-time business, not as a hobby or a job. If it's approached as a hobby, there is no real commitment to learning. If it's a job, it can be frustrating because there is no regular paycheck. Trading is a business and incurs expenses, losses, taxes, uncertainty, stress, and risk. As a trader, you are essentially a small business owner and you must research and strategize to maximize your business's potential.
Listing here some factors which are must to become a successful trader : Knowledge of the forex market Guidance from mentors Research before investing Real trading experience Patience Day Trader Discipline Set goals and evaluate your progress
That's a good list, but risk management is another great factor that somewhere affects one's success here.
You can be a successful trader when you learn how to create a proper strategy, how to analyze the fundamentals and technicals. Also, emotions do not hinder a successful trader’s performance.
As a senior instructor/coach at TradingDrills Academy working with +500 students, I have seen three major characteristics in people who have turned themselves from aspiring to the successful professional trader: 1- Follow Cycle of Excellence & Deliberately Practice The cycle of excellence has a significant impact in improving effectiveness in professionals, including executives, musicians, Pilots, traders, and physicians. It explains that top performers are not born, but made. Just spending time alone on a subject, is not enough for mastery! Success relies on Deliberate Practice, constant corrective feedback, and a supportive coaching system. Top performers know the importance of combining process and conditional knowledge in all aspects of a professional career, including trading. They know to work hard, expect delayed rewards, and practice constantly with mentors to turn knowledge into skills. 2- Master Execution of Profitable Trading System Before mastering any skills, a trader needs to assure that these skills are part of a well-designed profitable trading system. This is similar to acquiring driving or flying skills, as one needs to practice using a safe and well-designed vehicle or airplane. All parts of the vehicle need to work smoothly together and be fully functional, in order to ensure its robust operation in the long term. Therefore, it is important to fully understand the characteristics of a profitable trading system, which acts as a vehicle to gain consistent profit for many years 3- Resolve Human & Market Psychology (MP) Conflict Although the development of a system seems straightforward from a financial perspective, there are lots of human psychology elements that need to be considered in advance. Although lack of discipline and cognitive biases are generally considered as the root cause of this problem, the study of trading psychologist Dr. Brett Steenbarger, indicated that there are three major “Cognitive/Emotional Mismatches”, causing the problem. I am preparing several videos to describe this in detail that will be released soon. Happy Trading! Ray