Why some investors gain constantly money, others go bung during their first year of trading? Yahoo Finance portal quoted the financial expert Martin Thomas, who claims that there are four common features that all successful investors should possess. In his long-time experience, he makes a research of the strategies that different traders apply. An interesting fact is that two people may act in the same way or their moves could be similar, but finally only one of them makes high profits, the other one loses. Why does this happen? This is a common question. Besides, we may ask – “How do people feel when they lose?”, or “How to move on when I lose all my money?”
Martin Thomas says that during his research he communicates only with investors who have trading successfully for at least seven years, and have no problems with their personal life. How to see whether a particular investor is happy in his personal life or not? He is excited in other surrounding (except that of brokers and traders), he could talk in themes different from those of investments. Such traders Thomas calls “ingenious”.
Which are the four common features of these “ingenious” traders? They are confidence, discipline, courage and self-control.
Confidence – this is a basic quality that you should possess in order to gain success in every sphere in life, but without a combination of courage, dedication and self- control, it would be a waste of time. There are a couple of things that could break the trader’s spirit. The strongest “killer” is the unrealistic expectation. For example, the belief that you must gain profits all the time – every trader loses sooner or later, this is a part of the game. When you get rid of the unrealistic expectations you will trade more calmly and you know that when a person stays untroubled, he makes the best decisions.
Discipline – if you want to be successful for a long time, it is necessary to strive for a self-improvement. A person is learning during his whole life and the successful trader should aim to be better and better every single day.
What else does the discipline involve? First, you should define your investment preferences and your personal style. That should be something that you really like. For example, if you are interested in currency market trading , probably this is the sector where you would act in the best way. A person cannot be good at something, which is against his will. Then, you should spare some time and money to get educated and to make a research on this sphere.
Courage – trading is not for cowards. Movements of the market cannot be foreseen exactly and regardless of the analysis you use, nobody could guarantee a right prognosis. There would be always periods of loss. Then you have two options – to get self-pity or to take your lesson. The “ingenious” traders use such moments to analyze their moves.
Martin Thomas says that all successful traders, which he asked, share that they keep notes. Make a writing pad – it would be your best teacher.
Self- control – How do you make decisions? Led by your emotions or by your mind? Trading is not like a roulette game in Vegas. “Ingenious” traders always have plan to follow, without letting the emotions to get over their mind. You may use the strategy of some famous investor, yet it has been tested.
Do you possess such qualities? If the answer is no, think about this, and eliminate everything that would be an obstacle.