Trading Psychology: The Role of Discipline, Patience and Courage

ScottTrading is not as easy as it seems, we agree. What is it that makes some traders successful and others unsuccessful? What do successful traders do differently that reap benefits? For us, its discipline, courage and patience. Until and unless you don’t follow this trading psychology, it’s unlikely that you’ll be a successful trader.

Most traders do not realize that successful trading comes from belief and confidence within oneself. It is an attitude! It is thinking like a winner – the mindset. That is exactly what you need to become a successful trader. Here’s how discipline, passion and courage develop the right trading psychology and reap positive results for traders:

Discipline

A lot of traders aren’t disciplined in their approach. Discipline allows you to more effectively plan your trades and work according to your strategy. Prepare a trading plan and most importantly make a habit of following it.  You cannot be disciplined in what you do if you lack pass
ion. The desire to succeed is the only thing that’ll set you apart from the rest of the traders. Remain disciplined and remember, always remain emotionally detached from the market.

Patience

The world has become restless. Today people look for thrills without risks, money without effort and a profitable trade without doing homework. The market knows better than you, so never rush for a trade. Have patience and wait for the right signal. There’s a golden rule of trading – no signal, no trade. Watch the market before you make any move. Wait till the trading behavior dictates you to enter the market. Patience is not only important in waiting for the right trades, but also important in staying with the trades that are working. You must know how to patiently wait for the optimal time to sell. Selling a winner early will not allow your account balance to increase exponentially at an ideal rate.

Courage

One of the basic traits of successful traders is that they believe in themselves. They have the confidence and courage to stick with their plan, not stray from their rules, go against the crowd if need be and see the end result. A successful trader is courageous because he knows himself. He is aware of his strengths and weaknesses, thus has a trading edge. This is what sets him apart and what gives him confidence and courage that whatever he’s doing is right for him.

Looking to explore your trading psychology edge? We can help! At Trade your Edge, we offer online resources and programs to help you become a better trader and earn profits.

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