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We’ve all heard that it takes 21 days to break a habit, but what about starting one? Research published in the European Journal of Social Psychology in 2009 found that forming a new habit takes 18 to 254 days. The researchers also discovered that it takes an average of 66 days for a new habit to become automatic.
If your trading account’s figures are lower than you’d like them to be, don’t worry, as everyone encounters this problem. You may, however, begin imitating the actions of successful traders right now if you want to expedite your journey toward success.
A lot of that has to do with how you conduct yourself as a trader and not necessarily your market expertise. Even if you can’t control the market, you can manage your own behavior. As a result, acting as a successful trader can be a wonderful way to get started. If you want to trade like professionals, you should adopt the following five habits.
1. Start your day right
Successful traders develop the habit and practice of planning out their days to have uninterrupted trading time. To be a successful trader, you can’t start your day at 11, take your time with other leisurely activities, and then start trading. As tempting as it may be, successful traders aren’t lazy.
Time is money, and the best traders make a habit of waking up early, getting their minds ready, and planning their day before the markets open. This includes analyzing the market and making time for other routines, such as working out or running errands.
Andrew Aziz is a successful trader who believes in taking care of himself to mentally prepare for the day’s trade. His daily morning routine consists of waking up early and exercising, and he never immediately begins trading.
2. Knowledge is power
It is crucial to create a solid educational foundation. The top traders aren’t just interested in gaining trading knowledge. They’re curious about everything and everyone, and they’re using that curiosity to improve their financial situation.
The truth is that you never know when a piece of information can spark an idea for a trade or investment. As a trader, you should obsessively watch the news, technological advancements, trends, etc. This trader habit will benefit you as your career progresses and make you more interesting and well-rounded.
These habits, on the other hand, should not change once you start trading seriously. Even seasoned traders should make it a habit to revisit and re-learn the fundamentals frequently. When you approach the same subject from a position of experience, you’ll often find that you grasp it better.
Blackstone Futures offers educational content where you can learn to trade, brush up on your knowledge, and become one step closer to being a successful trader.
3. Control your emotions
In trading, emotions have no place. Take a break from trading if you’re upset, nervous, or letting greed get in the way. Allowing these negative emotions to take control will only make things worse for you. One way of overcoming negative emotions is through meditation.
There is substantial evidence that meditation can assist us in coping with stressful situations. In a review done by Mindful, they found the following benefits of meditation:
- Improved concentration
- Increased emotional resilience
- Deeper compassion
- Improved mental health
Mindfulness meditation improves emotional well-being by improving interoception, awareness of our bodies, and relaxing and reducing stress. This awareness is accompanied by observable changes in brain structure and function and breaks thinking cycles, giving us more control over anxiety and negativity.
Recently, there has been a surge in interest in adopting meditation to help traders and investors improve their financial market performance. The goal is to use the body to train the mind to avoid fear, greed, and cognitive biases influencing trading decisions. So, to calm our nervous system, we can shut out noise, enhance reflection, and instill thankfulness.
Traders often believe that overcoming their emotions will improve their trading, and many turn to meditation to help them do so. The goal is to become completely aware of our emotional reactions when needed, rather than being emotion-free, to use them as information instead of distractions.
4. Practice your trading strategy
A forex trading plan is only effective if followed, and it should get tailored to your specific goals, lifestyle, and risk tolerances. Successful traders are disciplined and test out their methods before going to a live trade.
If you feel your trading strategy is not working for you, practice your trading methods on a demo account. Once you’re feeling comfortable and have proven your strategy works, you can trade with real money. This will ensure you save money.
Using a Demo account has various advantages, including:
- You will get the opportunity to become familiar with the trading platform and other trading products.
- Start experimenting with different trading methods without risking any real money.
- Gain confidence in your trading decisions.
It is advisable to begin slowly. Improve your trading methods and techniques by learning more. Then apply that confidence to your live account.
5. Study successful traders
Following the path of successful traders is a common thing to do if you want to be successful. Great traders are aware of this. Thus they make studying other successful traders a habit.
Setting aside time to observe what other traders are doing well so that you may contemplate how to replicate their success in your own business is an excellent habit to develop. This isn’t just a recommendation for beginning traders, but it’s something that seasoned traders continue to practice well into their careers.
Allow yourself to be inspired by what others are doing successfully. Don’t try to copy them, but instead, let it inform and encourage you to enhance your trade and career.
If you want to have a realistic chance of generating money as a trader, it’s time to quit being naive and start thinking differently.
The habits listed above aren’t all you’ll need to become successful at trading. However, paying attention to them and incorporating them into your trading will boost your chances of success.
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