What do a successful businessman, a winning yachtsman and a profitable trader all have in common? Answer: They all measure risk, plan a direction, continue on their path without getting flustered by every change that occurs and most importantly they adapt to improve significant flaws in their plans or to step up to clear opportunities. I could also add they are usually long term thinkers with medium term but flexible strategies and tight tactical man-oeuvres … but I think you get the picture.
Check your own psychology regularly and grow as fast as you possibly can
If I give two traders the same system, same bank, same broker, same tools and same expectations, chances are high they will have very different results and experiences over a 6 month period.
Our own psychology is the key ingredient to holding everything together. It’s not about being stubborn, brave or strong willed as much as having the maturity to know yourself, see how you affect your trading business and know when to bend with the wind or stand your ground like the earth under pressure from the elements around you. We each have our own path of enlightenment here but make no mistake – your beliefs, biases, attitude and adaptability will show in your trading. Likewise what you learn from this in trading will often improve your life as you see patterns appear. The process seems never to finish but continues to open new paths, thinking and richness.
There are a handful of books and techniques on this topic but I would suggest you stick to the authors that specialise in this field and have many years experience behind them. They will more likely lead you on a better path than those telling part of the story based on their experience to date and spreading their own biases in their teachings. Notable authors on this topic are Van Tharp, author of ‘Trade Your Way To Financial Freedom’ who has an excellent ‘Peak Performance’ course and Mark Douglas, author of ‘Trading in the Zone’. He is also popular and one of the best.
Well there you have it – my top 15 survival skills based on my experiences and those of hundreds of other traders I know and have met. Whilst they would hold you in good stead for most investing and trading endeavours, they are particularly suited to CFD trading where the opportunities are as great as are the dangers. Trade smart, trade with long term survival in mind and start small.
I wish you all the best. Good trading.