Is this the most important trait you need as a trader?
I just wanted to write a quick post today...nothing about strategy or tactics or chart examples.
I was thinking about all of the character traits you need to be a successful trader. There are certainly a lot, and this business has a way of testing all of them within a person.
However, I thought perhaps the most important was:
Resilience is basically the ability to get knocked down, pick yourself up, dust yourself, and come back stronger than ever.
Bottom line: You MUST be resilient to be a successful trader.
You will have days when it feels like the market is personally against you.
You will have days when you place a good trade and still take a loss.
You will have days when you just miss getting filled on a great trade.
You will have days when you lose your internet connection and miss the trade you've been waiting all day for.
You will have days when you get stopped to the tick and then the market rockets in (what would have been) your favor.
You get the point. So, here are some tips for increasing your resiliency:
I know that seems odd...we're not athletes...we're traders. But, getting enough sleep, eating reasonably well, and trying to break a sweat once a day can be a big help with mental toughness.
You will have setbacks. If you do this long enough, you will have a LOT of setbacks. It's not a matter of 'if' it's a matter of 'when'. So, simply accepting that you're going to need to be resilient at times is a good step.
Have A "Fire Drill"
I'll talk in-depth about this "fire drill" concept in a coming post, but the basic idea is to know (ahead of time) what you're going to do when things go poorly. It's just like if your house was on fire...you need to know what you're going to do before it happens...you don't want to have to make key decisions in very stressful situations.
Avoid Seeing Your Situation As Permanent
In a slump? Having some bad breaks? Remind yourself that it won't last. The same goes for a winning streak as well, by the way. It's not permanent.
Learn From Your Losses and Setbacks
Every trade (win or loss) is an opportunity for more knowledge. And, frankly, every trade is also an opportunity for self-awareness and growth.
You might find this post (8 SOLUTIONS FOR BETTER DEALING WITH TRADING LOSSES) helpful as well.
Please let me know any thoughts or questions either below or by email at firstname.lastname@example.org