The First Thing You Need To Figure Out To Be A Good Trader

The First Thing You Need To Figure Out To Be A Good Trader


The very first thing to get across to people is you've got to figure out what is the right method. It's not just fundamental versus technical. Either are you short-term, or you're long-term. Do you want to trade stocks? Do you want to trade futures? Do you want to trade currencies? On and on with the variations. …It's a discovery process, an evolutionary process. Nobody can tell you that. The approach traders pick has to have an "edge" and "work" and that it has to take into account risk management.

I also think that what makes a good trader is not how much you lose or win, but how consistently resilient you can be.

What do you guys think ? Share your insight on what it takes to be a good trader and why.

Why are you a good trader ?

[quote=allisonmagic;9032788]The First Thing You Need To Figure Out To Be A Good Trader The very first thing to get across to people is you've got to figure out what is the right method. It's not just fundamental versus technical. Either are you short-term, or you're long-term. Do you want to trade stocks? Do you want to trade futures? Do you want to trade currencies? On and on with the variations. It's a discovery process, an evolutionary process. Nobody can tell you that. The approach traders pick has to have an "edge" and "work" and that it has to take into account risk management. I also think that what makes a good trader is not how much you lose or win, but how consistently resilient you can be. What do you guys think ? Share your insight on what it takes to be a good trader and why. Why are you a good trader ? {image}[/quoljte]

​1. Adequate account funding. (micro/mini accounts are largely responsible for being unprofitable).
2. Method is important but once you are trading REAL MONEY you are unlikely to trade unless your method is solid.
3. $10, $15, $25/pip or tick vs. 10 cents, 15 cents, etc per pip. Things change dramatically. No one treats a micro/mini account the same as an adequately funded account.
4. Forex Brokers are cleaning up on all the poorly funded accounts where wanna-be traders do not know true value. True value is understanding the difference between 25 cents/pip and $25/tick.

You're up 10 ticks on one contract of the S&P 500 which is equal to $250 vs being up 10 pip on the euro on a micro account worth 0.10 cents per pip or $1.00. The futures trader locks in $200 and is happy to have his SL taken out 2 ticks later for a $200 profit. The micro FOREX account holder holds on for more. The market eventually goes against him minus 10-15 pips before he finally cuts his losses. After all it's only $1.00-1.50. It's difficult to appreciate value when the stakes are low.

First things to do to be a good trader -

1. Be honest to yourself, yup yourself. Stop the lies you habitually tell yourself.

2. Demolish your huge EGO. It's there, don't pretend you can't see it.

3. Play the fool. Yup the abject fool.

These simple things most people won't do. This the reason for the naturally high failure rate.

You want to be a successful trader then do these thing. You're on the road to become one.

The DJIA made new highs nearly every day last week. This fact really isn't important to a trader. But the demand level shown is. It essentially represents a line drawn in the sand. It is a point where buyers consistently bought. Buying was usually signified by engulfings as shown with the green arrows. There was little or no indication that this market was going to significantly decline. Top callers were likely mostly disappointed. A forex trader trading a micro account might not exit the market with 15, 20, 25 or maybe even 30 pips if he or she sees only $1.50, $2.00, $2.50 or even $3.00. But a futures trader with >$200 in profit or more is likely to lock in profits and let the market take his SL out at a profit.

The demand level held until near market closing today. Fridays are notorious for either frantic buying or selling especially near closing.

Elaborate indicator-laden strategies are not necessary to be profitable. An adequately funded account with a KISS strategy is really all that is needed.

By the way an adequately funded account does not mean one with 100K. But I think 3 to 5K is (IMHO).

The first thing i recommend is learning how to ask the right question and how to solve problem.

The second thing i recommend is learning how to protect your money. The sure thing i know is how much i will lose if i'm wrong.

​The third thing i recommend is learning how to spot right opportunity. And use numbers to remove emotion (trader's worst enemy).

Never give up!

Keep learning, keep trying.

The first thing, if i can advise anyone, is to figure out how the rates are moving. Is the rate moving in favor of the take profits or is it in favor of the stop losses? Which one of those two is the greater number? SLs or TPs? Once you figure that out, react adequately. Big surprise is there for you, if you handle that thing correctly. And it is not an unpleasant one...

The hardest thing about trading is that is so censored. With sport, you can study video tapes of pros and learn from them, work trading? You've just got yourself. What does everyone think about this?

The hardest thing about trading is that is so censored. With sport, you can study video tapes of pros and learn from them, work trading? You've just got yourself. What does everyone think about this?

Skyway and Zelo... great words.

That's true and the reason for that in my opinion is that it can't be taught at all. Its a personal journey that requires constantly falling on your face until you learn how to wobble forward clumsily through the dark. Patience and waiting for the right setup might be what I would consider the most important attributes of a good trader.

the main things in trading are: think twice before doing something, Stay patient and sober in any situation, Start with demo, but don't think that demo prepares you to real trading, Choose the good broker, and Don't be in hurry, because you will have enough time to loose money. keep calm

Method
Discipline to follow the method
Money management
Be able to handle the losses, they are part of the game
Be ready to accept huge gains

I agree with all the orators but I'd like to add that you should be flexible and know how to manage different situation. There is no certain plan in trading or the strategy that will work for you for many years. Forex is flexible and it needs flexibility from a trader.

Are three things allowed ?

Try and learn how a market really operates, no mean feat as their is little information anywhere on it so you have to collect your observations and form a tapestry of the information
Understand how your mind works as your effectively trading against yourself.
The best traders recognize the need for and have strategies that encorporate the left and right side of the brain

Learn how to predict price action, however long it takes. Once you've done this, devise an entry and exit strategy that you fully understand and which gives you clear, identifiable signals to enter a trade and take profits. That's really all there is to it, because if you do this, the psychology will take care of itself.

Hang on a minute isn't every trader in the world told don't try to predict where price is going !

Couldn't agree more with your post.

I've heard that somewhere yes, which probably explains why most haven't got a clue.