Introduction to what it takes to be successful
Whether it is the stock market, commodities market, or any other market, trading is a very difficult endeavor. It literally takes years of proper trading education to become consistently successful. There is no shortcut, and most traders lose in the long run. The best traders in the world have a solid foundation of trading knowledge, acquired over a long period of time. This includes understanding, and implementing, a proven trading plan, good money management, and proper trading psychology. In this article I will share with you three key traits of the elite market operators. This will help you to build your own solid foundation of trading wisdom, and improve your stock market results.
Patience is a key
It is imperative to always wait until as many factors as possible are in your favor, before taking a position in the market. You need to sit tight until just the right opportunity presents itself. Patience is also important when it comes to the ability to hold on to a winner. If you want to make really big money, you need to stay with a winning stock, until your objective analysis tells you to exit the trade. Having the right kind of patience will help you achieve excellent stock market results. The world’s best traders and investors are very patient, in just the right way.
Be an independent
I can’t stress enough how crucial it is to think and act independent of the crowd. This includes listening to, and getting tips, from most of the so-called market experts in the mass media. Acting on these tips is usually a recipe for disaster. Always do your own research and analysis, once you develop the ability to do so successfully. The general public is usually wrong when it is most important to be right. This is at major turning points in the market, and when they are very bearish or bullish. Do not follow conventional wisdom. It rarely works in any trading venue. Be your own person, and think against the herd most of the time. Your stock market results depend on it.
The markets are always changing. You will be successful if you are able to recognize, and then act accordingly to whatever the market is telling you. You always need to listen to the market, and go with the flow of the market. You simply cannot be rigid and stubborn. This includes bucking the major trend. If you argue with the market, you will lose. You want to have a flexible mind which is objective and un-biased. Flexibility also includes recognizing when you have made a mistake, and rectifying the situation quickly, to keep your losses small. A lot of money has been lost due to the fact; many traders have a very narrow belief system. They are not flexible enough on a psychological level. This simply does not work in the marketplace. Stay flexible in a number of ways, and watch your stock market results flourish.