eirmoney | Make Money Trading The Stock Market

Make Money Trading The Stock Market

Posted by Tom Preston | 29 September 2009

5 characteristics of successful traders. Tips and strategies on how to successfully trade money in the stock market.

In Ireland we've been restricted by a limited set of brokers, and a limited set of functions that those brokers offer to retail customers. However, now that trading is largely moving online, outfits such as National Irish Bank, Goodbody (which also trades through the AIB online platform), and TD Waterhouse, allow us to dabble a little more efficiently. Irish residents have also successfully opened accounts at some of the discount foreign brokers (such as E*Trade and Zecco) although there can see plenty of red tape.

There are thousands of traders on the stock market, both full time professionals and part time amateurs. In both groups, some are successful, some are not. The truth is that the vast majority are not successful, and if you are just starting out that winning streak can be particularly elusive. But for both beginners and professionals, there are winners. Contrary to popular belief, winners are not just 'born.' They do not have any natural advantage over you. But they do follow certain 'rules.' So what sets the consistently successful traders apart from the others? Here are 5 characteristics of successful traders.

1. Be a Follower.
Despite the common misconception to the contrary, the key to being a successful trader is to be a follower, not a leader. Successful traders do not magically "make things happen". Those who try to force the market and enter too early because they "just know that it is going to go up" will not win. Successful traders will follow their proven system and will not attempt to make things happen outside of it. That is the whole reason for using a system and putting the slight edge it gives to full advantage.

2. Be Prepared
Successful trades are well prepared in advance. It is essential that there is a trading plan in place and that it is adhered to rigidly. This does not necessarily have to be time consuming. With a good system in place, successful trades can be planned quickly and easily.

3. Be Emotionally Detached.
Successful traders always stay emotionally detached. After entering a trade, it is essential that it is not touched until the criteria for the pre-determined exit strategy are met. Watching trades too closely can be dangerous. Again, strictly following a very clear system removes the desire to intervene.

4. Expect Success
Successful traders always expect to be successful and become rich. They can easily picture themselves wealthy, and are not restricted by self limiting beliefs. Traders without this self belief have a tendency to sabotage their trading account as it starts to get 'too high' because of a subconscious belief that they don't deserve to be rich. Such hidden psychological obstacles can really hinder success.

5. Learn From Others.
The really successful traders all have a mentor. They all learn from the experience of others, and put it into practice, using success to breed success. This cuts out years of trial and error, and is a key to success in any field, not just stock trading.

If you follow these 5 golden rules of successful traders, you too can enjoy real success on the stock market - the key is to follow a proven system.

Article Source: http://www.articlesbase.com/investing-articles/make-money-trading-the-stock-market-5-characteristics-of-successful-traders-1274975.html

About the Author: Please visit my site for more info and tips about this subject, thank you. http://sentinel-midnightfire.blogspot.com/