People ask me all the time about the most important skills every trader needs to be successful…
This is a subject that people have written books about, and I’ve read a lot on this particular topic.
But you don’t need to read a book because I’ll break it down for you here today. So here are a few hallmarks and tenets of successful trading and traders…
You need discipline, patience and the character to work hard at this if you want to make money. Trading is not easy, and it will break many people and their accounts.
In fact, the vast majority of people lose money trading, some studies say it’s as high as 70% to 90%.
You can’t just follow the herd… You must be an independent thinker and think for yourself.
You have to be able to take in all the news and noise out there and filter it in a way that’s unique, and not necessarily what the mainstream understanding of what a news topic and its effect on the market will be.
And for me, there’s something I think is super important that not many people talk about…
Know thyself.
You have to know who you are. What do I mean by that?
Are you a patient person? Are you impulsive? Do you like long- or short-term holding? Are you someone who really likes to take a deep dive into a particular topic and become an expert on it?
These are all things you have to know and take into account when making a trading plan. When you don’t “know thyself,” you open yourself up to making mistakes.
And one of the biggest mistakes people make is they simply try to copy someone else’s trading systems and styles, and that system may not fit your personality type and who you are as a person.
Once you figure out who you are, you can figure out a trading strategy that will highlight your strengths, and cover some of your weaknesses — learn to play to your strengths, and you’ll be on the right path.
For example, I learned early on in my trading career that I have the courage to put on big trades. I also learned that I’m a bit impatient because I want the trades to work almost right away.
I also don’t want to sit in positions for months and years on end… I don’t want to be an expert on every topic and know everything there is to know about a company I trade. I’m much more interested in the macro worldview and how that’s impacting markets and stocks.
And it’s worked out for me in large part because I know and understand who I am as a person and a trader.
I use what makes me different and good at to my advantage. So figure out who you are, what you’re good at and how you want to spend your days, and then tailor a trading strategy toward that.
Then you’ll be on the right path.
Jeff Zananiri
Jeff Zananiri Trading
*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.
See these big green bars on the chart below?
They’re from the indicator Celeste Lindman and her team developed…
To tell you when and where to enter a trade… When to get out…
And help you trade with LESS emotion, which is something I constantly preach!
Avoiding the noise in the news… complicated patterns… guesswork…
And the most important part — all the BS the market throws your way!
