Famous investors, as we know them today, didn’t become rich and successful overnight. It took them years of investing in the time, energy, and capital to get them to the top of the ladder where they are now. So, be patient, and to start, follow the steps below, which will eventually lead you to a successful investing career. 
 

How does someone become a successful trader?

By observing an average investor in their trading activities, you will notice a certain pattern. Successful traders have a plan on how to start, how to proceed and how to finish their trades successfully. Since this is very important, we are sharing with you some of their habits.
 

1. Learn & Research

Before starting with anything, you should first educate yourself. Be ready to study the stock market, terms and the foreign exchange market before you step into investing. Every successful investor today started with sound knowledge on the matter.

As in every business, you must know why you want to do this. Focus on your reasons and motivations as they will help you stay in the game even if times get hard.
 

2. Seek advice

Don’t be shy to ask for help or advice when needed. Having a mentor is an incredible thing. A mentor will present you with the trades they made and help you adopt the good ones and avoid the bad ones. A mentor will also guide you toward articles, tutorials and other resources they found helpful. 

3. Do not invest money you cannot afford to lose

It is very important that the money you use for investing is expendable. If you are investing the money that you need for your basic life needs, such as paying off the loan or your children’s savings, you are risking too much. You must be aware that you will lose from time to time and that will probably be hard to bear. Thus, we advise you to deposit only money that you can afford to lose.

In case you don’t have some extra money available for trading, start saving now. 
 

4. Treat it like a business

Your hobby can be fishing, golf, climbing, but not trading. You must consider trading serious business and act accordingly. You must educate yourself continuously, be informed about market moves, read the analysis and strategize to maximize your investing potential. Trading, as a business, includes expenses, losses, risk and physical/emotional stress.

You should also accept that money is not the only thing you must invest in. Your time, your energy, your knowledge are invested, usually at a higher level than money. 
The gold rule in business is to be emotionally intelligent. When you lose, don’t take it personally. Instead, take the time to notice the mistakes and make the necessary changes. 
 

5. Make a trading plan

No matter the amount of deposit you're putting in, you should always have a trading plan. A trading plan is a set of rules, where you outline your entry and exit strategy, as well as the management criteria for trades. It will help you maintain discipline and stay focused on your financial objectives. 

If your trading plan doesn’t work, don’t panic, just make another one. But never enter a trade without a plan.
 

6. Use the maximum out of the technology

Technology has evolved enormously in the last decades and you should use it at maximum. There are various charting platforms available that will assist you with the predictions and analysis needed. Simple things like a high-speed internet connection or a smartphone are a must-have if you want to stay up to date with market changes.

On your smartphone, you can monitor, manage trades and receive market news. With the system of backtesting an idea, you can prevent mistakes and get insight into the historical data. 

7. Use Stop Loss and Take Profit

Always use “stop-loss” and “take profit” orders. In that way, you’re protecting yourself from losing a big amount of money. Actually, you set a certain amount of money you’re prepared to lose if the trade doesn’t go your way. Losing money is stressful enough, so always set boundaries you can tolerate. 
 

8. Know when to take a break

If any external factors disturb your process of trading, you can’t focus on your work or you’ve lost your motivation for a while, be sure to take a break. Successful traders can easily identify the physical and emotional conditions they’re into and decide the dynamic of their trading activities. Once difficulties are over, you can return to your business. 
 

9. Appraise your progress

It’s important to measure your progress on a regular basis. Stop and take notes of what you are doing right and what you’re doing wrong. Both sides are equally important. When you notice your good habits, work on their improvement, since they’re the key to success. Be conscious of your bad habits and try to eliminate them in the future. Your mentor can help with this.
 

10. Keep going

Remember to stay committed and passionate about your trading business. A key to success is persistence. 

Have in mind that hard work pays off. Diligence is a good habit to have. 

Stick to your trading plan, but be flexible with changing it if you notice that it doesn’t bring a profit. 

Plan for the long-term and keep going toward your goals.

Conclusion

Although the successful traders share different personality traits, they have pretty much the same “roadmap to success”. 

• They all start with research and education which never actually stops. Traders upgrade their knowledge constantly, as it’s the most important input for successful trading. 

• They have a certain attitude and they take trading seriously. Therefore, they make a plan and stick to it. 

• They observe their process and make changes according to the results. 

• Traders make the most of technology and are always up to date with new trends. 

• Even though as an investor you must work hard for your goals, you also must know when to take a break. The rest can help you boost your energy and creativity once you come back to work.

Be patient and happy trades!
 

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