This article in The Trader’s Pendulum Series discusses habits 4-6 of The 10 Habits of Successful Traders to give you areas on which to focus to move from hobby to business in your trading. In the last article we discussed the first 3 habits which will get you working on your trader’s business plan, or at least the goal setting section. Your mission in developing these habits is to get out of the Technical Trader’s Trap and transform into an Entrepreneurial Trader. By now you have completed the Scorecard (www.fxtradersedge.com/scorecard) and are ready to get down to business.
- Commit to your education with a trading coach
How do successful performers structure their improvements in any field of endeavor? The answer is pretty clear. They have a coach and they build skills by studying, learning and practicing. Most expert performers engage mentors at various points in their careers to help them learn and grow. If you think you can train on your own you’ll need to define structures to keep you on track and accountable. Take the step to keep yourself on track and to achieve your goals – think about getting a coach. It’s often too easy to get locked into your own head and your own ideas and before long you’ll find your visions have narrowed.
- Understand and exploit your unique trading personality
There are many different trading styles because everyone is unique. Different personalities are better suited to trade with certain styles. If you enjoy sitting in front of the computer screen watching the market action all day long, you may prefer day or momentum trading. However, if you like to analyze the markets, establish your trade plan, and let your trade play itself out, you might be better suited to swing or position trades. Neither style is right or wrong. What is key is finding the style that suits your temperament and lifestyle.
- Follow a system
If you look at successful organizations such as Microsoft, Federal Express or Wal-Mart, you’ll find these companies are doing the same thing, the same way, every day – consistently. These companies arrive at a winning formula that they execute on a daily basis. As a trader, ask yourself if you have the winning formula to get that trader’s edge. If you do, are you executing that formula or system consistently, or are you still in the technical trader’s trap, always looking for other systems to use? If you have a system, follow it.
Next week’s article will discuss Habits #7, #8 and #9.
If you’re interested in adopting these habits and working through the business planning template for Habits 4, 5 and 6 discussed in this article, the book is a detailed blueprint for you to follow and make your own.
If your mission is to become a trader or investor who stays out of the Technical Trader’s Trap, then take the leap to grow into an entrepreneurial trader.
I created the FX Trader’s EDGE Coaching Program modelled after the “10 Habits of Successful Traders”, which is the title of my newly published book by Wiley.
Excerpted with permission of the publisher John Wiley & Sons, Inc. from The Trader’s Pendulum: The 10 Habits of Highly Successful Traders. Copyright (c) 2015 by Jody Samuels. This book and ebook is available at all bookstores, online booksellers, and from the Wiley web site at www.wiley.com.