Successful Trading

Following are some thoughts on what attributes a trader needs to have and lists a few of the steps he or she needs to take in order to become (and remain) successful.

• Remain unemotional
  
  Become a "trading machine". Even though emotions can be difficult to master, do not let them affect your trading decisions. Realize that your results from a single week do not matter much, nor the results over an entire month; what is truly crucial to your trading success is consistency over longer periods of time.
• Treat trading like a business; make a business plan.
  
  Most successful businesspeople have a plan, and so should you, should you wish to experience long-term trading success. Ask yourself the following questions:
  • What will I trade?
  • What trading techniques will I follow?
  • What will be my working schedule?
  • What are my expenses?
  • What are my maximum allowable losses?
• Keep track of your trades. Keep a trading log and perhaps even a trading journal.
  
  At the very least, your trading log should reveal the following: You should be able to determine what you traded yesterday, and what you traded a year ago. You should also know how much you made one month ago and how much you lost three months ago. Also, it is insightful to keep track of your average returns per month, half-year, and year.
• Focus on up to three trading techniques that suit you best.
  
  Become a flexible, diversified trader. Strive to master a few well-chosen techniques that will serve you under various market conditions. Diversify your focus over just a few techniques and really get to know those techniques.
•  Learn to become comfortable with risk and uncertainty.
  
  Trading certainly involves constant risk and uncertainty. If you are continuously afraid of losing money, then it is likely you will experience frequent losses in your trading. Many new traders allow their fears of loss to take over; this can lead to a state of paralysis. Great traders evolve beyond their fears.
• Always accept personal responsibility for all your trading decisions.
  
  Great traders constantly remember that their trades, whether they turn out or fail, are their own responsibility. They avoid blaming others for their mistakes and instead focus on learning from them.