All Successful Traders Do These Things Every Day
The number of traders is on the rise. While the exact number is not known, the number of firms offering trading services is rising which is a good indicator of all this. Sadly, only a very few traders who start trading become successful. In fact, while there are many investors and hedge fund managers in the Forbes list of richest people, only a few traders make it to the list.
I have spent years reading more about traders. I follow most of them and I have cultivated friendships with some of these traders. My experience reveals that most successful traders do the following things every day.
- They Read the News
All successful traders focus their trading on the news. News move markets and traders want to be the first to know it when the news break. This is the reason why many successful traders subscribe to platforms like Bloomberg and Reuters that charge them thousands of dollars every month. Therefore, as a trader, I recommend that you make sure you are the first person to get the relevant information.
- They do technical analysis
Investors don’t bother with technical analysis. They are usually focused on fundamental analysis. They are focused on the intrinsic values of the assets that they buy. This is very different with what traders do. Traders focus on short term details. They focus on charts and how assets will move during the day. To achieve this, they rely on technical analysis which uses historical data and mathematics to predict the market movements.
- They write down a journal
To be successful, you need to use your history to make better decisions. To learn from the past, you need to write a journal about all trades and decisions that you make. For example, when you open a trade, you need to write down the reasons for opening the trade. Most trading platforms give you an option for notes in their platforms. You can write these details in the platform, but I recommend that you use the traditional pen and paper.
- They Focus on Trading
During working time, successful traders focus on trading alone. They focus on finding opportunities to trade. They don’t combine trading with other things. The same way that builders or lawyers focus their daily activities on doing their work-related activities, so should traders spend their days trading. As a trader, you should spend your days trading and finding opportunities. If you are a part time trader, you should manage your time in a way that gives you enough time to trade.
- They Interact with other Traders
As I have written before, you cannot be successful as a trader if you decide to do it alone. A good rule is that you should always interact with other traders. Interacting with other traders will give you a good perspective of what is happening in the market. While the buck will always stop with you, it is essential that you hear the perspectives of other traders. Doing this will help you become a better trader. You can also interact with other traders using social media platforms like StockTwits and Twitter.
- They read
I have written before about the benefits of reading. You can’t succeed as a trader if you are not passionate about reading. First, I recommend that you start every day by reading the news from platforms like Bloomberg, Wall Street Journal, and FX Street, Second, I recommend that you buy books from experienced traders, finance experts, and other authors. Doing this will help you become a better trader. Remember, all successful traders allocate a substantial amount of their time to reading.
Above all, all successful traders spend their days learning from their past mistakes and their past successes and mistakes. They don’t spend their days worrying about the past or future.
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