When one thinks about successful traders it’s easy to imagine colourful individuals making large, high risk bets on the direction of international markets, almost on a whim – and then scooping the prize as their ‘punts’ come good. There will always be a few charismatic risk takers amongst the world’s traders who, by a quirk of fate or an intuitive reading of an economic situation, make a fortune and live up to that image. The truth is that the vast majority of the world’s successful traders do not match that stereotype at all.
Rather they are diligent, disciplined and not prone to erratic behaviour. In fact many successful traders could almost be described as robotic or systematic in their approach to the markets. This may go some way to explain the rising popularity of algorithmic trading methods over the last decade or so.
Just as in the fable of the hare and the tortoise, the trading race is not a sprint and a slow and steady approach will often outshine a frantic burst of activity at the beginning of a trading journey. Set out below are ten things that brilliant traders do and do well. If you can follow these guidelines, then you will be on the right road as far your trading journey is concerned.