15 Habits of Highly Successful Traders

In trading the markets, there are many things that separate successful traders from those who end up losing money.

Knowing what these things are can help you become a better trader, and potentially make more profit in the long run.

Here are fifteen habits that profitable traders exhibit.

Learn from them and institute them in your own trading.

A profitable trader analyzes every single closed trade — both winners and losers — to find areas of improvement.

A profitable trader may have different trading resources they use, but they always rely on their own sound reasoning rather than blindly following other trading influencers or signal-callers.

A profitable trader steers clear of the markets when they have certain reservations and doubts.

A profitable trader knows the reward-to-risk ratio of any trade they enter — before they enter.

A profitable trader knows if they have adequate capital to risk in order to realize their objectives.

A profitable trader exhibits self-control and patience, understanding that they don’t need to be in a trade at all times. They know there are stretches of time where they just won’t have a position, simply because their trading plan does not warrant it.

A profitable trader keeps their stop-loss where it is, never widening it on a whim or cancelling it altogether.

A profitable trader abides by their stop-loss and cuts their losses — instead of wishing the trade reverses for them.

A profitable trader views each trade as a separate and distinct interaction with the market and analyzes it accordingly.

A profitable trader trades with the trend (for the most part). Pullbacks and countertrend strategies may be traded conservatively, but profitable traders understand that countertrend movement is short[1]term and extremely dangerous.

A profitable trader lets their profits run until their trading strategy gives them an exit signal.

A profitable trader never chases. They don’t chase the markets. They don’t chase the money they lost in a bad trade. They stay sound and wait for the setups their trading plan dictates.

A profitable trader never overtrades. They stay patient.

A profitable trader becomes a student of the game, hungry for knowledge and always in pursuit of more information to sharpen their game.

A profitable trader analyzes the market and makes calculated decisions. They do not trade on a promise and a prayer.