Forex Tutorial
January 17, 2017

Mindset Of The Millionaire Traders!!!

Mindset Of The Millionaire Traders

The world’s top traders may all have different methods for making money
but they all tend to share the same personality traits that make them
great traders. To be a successful trader you must approach the markets
with the right attitude. Here, I have isolated ten key traits that the world’s
top traders have if you are going to achieve longer-term success.
Ten Personality Traits To Make You Successful!

You Are Responsible

You are in charge of your own destiny and responsible for your own
actions. No one else can be blamed. In today’s society this seems to be an
alien trait to many people. There is always someone to blame. The fact is,
if you want to trade successfully, you need to take actions and understand
that you, alone, are responsible – no one else. Traders who lose are quick
to blame the friend they got the tip from, the newspaper they read the
story in, or their broker. It’s everyone’s fault but their own. When you
place a trade you need to evaluate it yourself and understand that you are
responsible for its prot or loss. This leads on to understanding
the environment you are operating in and are
happy to accept the loss or prot as your own.


Many traders take tips from friend’s brokers and newspapers
without knowing how and why the markets
really work; they are of course doomed to fail. You
would not try and drive a car without having lessons
and the same applies to trading. You need to study
and learn about trading before you start to trade. This may sound obvious
but the bulk of traders don’t bother to learn the basics. You need
to spend time reading about all the aspects from psychology to different
approaches and methods. Once you have learned about the environment
you are working in you need to derive a method you are comfortable

Develop Your Own Method

The method you develop should be one that is compatible with your
personality and what you have learned. The approach you adopt must
be comfortable for you. Randy Mackay, one of the worlds top traders
asserted: “Virtually every successful trader I know ultimately ended up
with a trading style suited to their personality.” This is one of the reasons
many traders who purchase systems off the shelf don’t make money, even
if the system is a good one. While the odds of finding a good system are
small, the odds of getting a system that its your personality are smaller
still. If you can’t stand to give back profit then a longer term trading
system will not suit your personality, even though it may be profitable
over time. You have lots of different methods you can trade: Long term,
short term, breakouts, reversals, the list is endless. You need to decide
which one you are comfortable with, and which one you fully understand
the logic of, and which one you are confident will work for you.


All successful traders have confidence that they will succeed longer term
in their aim to make money. This is a universal characteristic amongst
the top traders and stems from the points we have just covered. Dr Van
Tharpe a psychologist who has studied the world’s top traders and the
personality traits that make them successful, concluded that winning traders
believe “they have won the game before they start”


Discipline stems from confidence. It is the one trait that every top trader
when interviewed refers to and its importance cannot be over estimated.
There are two reasons why discipline is so critical:

1. First, it will help you maintain proper risk control, and allow to exe
cute trades in accordance with your method during a losing streak
that all systems suffer.

2. Second, it stops you from second
guessing your system. If you do this
you will almost always get it wrong.

Why? Because you will tend to pick the
comfortable trades, and these are not the
ones that are likely to make money longer
term. Bill Eckhardt a trader who helped train
the world famous turtle traders once said
“what feels good is often the wrong thing
to do” and this is very true in trading. It’s
difficult to take trades when your friends,
newspapers and your broker tell you otherwise. But successful traders
don’t believe in running with the herd and feeling comfortable. They
believe in making money. Being disciplined and feeling uncomfortable
is necessary for longer-term success. You are never immune from bad
trading habits. None of us are – we are all emotional beings. The best
that you can do is suppress your emotions and having discipline, and is
essential to keep them in check.

Assume The Worst – Money Management

Many traders only think of the profits they can make from a trade, but
never consider the worst eventuality. They are blinded by greed. The
fact is that all the top traders tend to know their downside as soon as
they enter a trade, and decide whether the risk of the trade is worth
taking. Money management is essential for trading success, and by always
assuming the worst, you can decide if the risk reward of the trade is right
for you. As a broker once said to me about trading, “Always assume the
worst and you wont be disappointed. Things can only get better.”
No system makes money all of the time and no top trader does either, so
it is important in these losing periods to have strict money management
criteria in place to help you preserve your equity as best you can. Money
management is, perhaps, more important than your trading method itself.
You may have a successful system, but if it loses all your money quickly
and recovers when you have lost your stake, it is of little use. You need
to reserve your equity so you can stay in the game longer term. Always
decide if you can take the prospect of the worst eventuality in relation to
your trading capital.

Know What Your Edge Is

It is a fact that 90% of traders lose money longer term. Your edge is what
separates you from them. Any successful trader has something that sets
his or her method and personality apart from the majority and enables
them to make money when others lose. You need an edge that you can
define and gives you confidence that you can beat the herd. If you don’t
know what your edge is, you don’t have one!

Love What You Are Doing

Trading is mentally demanding. It’s tough and not all traders are suited to
it. As in all walks oflife, not everyone is cut out to be a trader. If the market makes you angry,frustrated, or all you can think about is trades you have on and nothing
else, then maybe trading is not for you. All the worlds top traders enjoy what they
do. They know at the end of the day they will make money, which is the
whole aim of trading in the first place. They enjoy the challenge and the
rewards trading can bring, and can handle the stress that is an inevitable
part of trading.

Final Words

Many of the above traits may seem obvious, but the bulk of traders don’t
possess them and that’s why they are doomed to failure. If you want to
be successful in trading, you need to be aware of your personality. You
need to know the environment you are working in and decide if trading
is right for you. Trading is one of the greatest challenges around and
with adequate education and preparation, can yield immense rewards for
those willing to accept the challenge.