There is a fine line between becoming a successful trader and becoming a trader who knows a lot, but can’t make money in the stock market. There are a few key differences that define these two.
Successful traders make their own decisions on how they want to approach the stock market and what qualifies as a good buy. This allows them to try out different strategies and work out a strategy that fits them best.
Traders who are not successful may learn a little bit about the stock market, but when it comes to trading they generally look for free stock tips on what to buy then invest their money into them hoping to get rich quick. And of course get rich quick hardly ever works.
The traders that are successful will create their own systems of trading and how they want to approach the stock market. They can then learn from any failures that they do have and try to stop them from happening again in the future. In this way they are constantly improving and becoming better.
Unsuccessful traders search the net for winning systems and switch strategies whenever they hit a rough patch. This stops them from learning anything new because they are constantly looking for the “holy grail” of trading systems that is never wrong. That system just doesn’t exist.
Successful traders will look for ways that they can control their emotions so that they do not start to panic when bad things happen or start to get greedy when good things happen. Emotions can interfere with logic and cause you to lose a lot of money.
Unsuccessful traders panic when they lose money and are swept up with greed when they make money. This causes them to make foolish mistakes just to satisfy their “fight or flight” instincts which makes them lose more money.
The traders that are successful are the ones that are always learning. They are learning how to improve themselves and their systems and over the long term this leads to some great performance.
Traders who are not successful do not want to work to become successful. They do not think about all of the preparation that it takes to get rich, they just want to be rich.