Habits of millionaire traders that set them apart:
To become consistently profitable in trading, you must think and act like you are, BEFORE you even become one. New traders should mimic the mentality and beliefs of people who have succeeded in trading before. This seems logical, but in reality few traders actually become successful.
If you want to start making money in the market, you will need some guidance in what needs to change and how to do so. In general, people do not like to consistently do anything that is somewhat “boring” or “uncomfortable”, which is one of the main reasons why traders fail. Most people knowingly don’t follow recommendations even when they know what they SHOULD do.
Millionaires value abundance and opportunity
One of the traits of millionaire trader is that they value abundance and opportunity. Most traders lose money because they trade really fast without having proper trade plan and exit rules. They do this kind of trading because they want to make money really fast. This common behaviour shows that person trading is a desperate trader.
Desperate trader means you’re “desperate” to make as much money as you can as fast as possible, and this is what prevents most traders from ever actually making money.
if you trade when you do not have an edge, or if you increase your position size beyond what you’re comfortable losing, you are being “desperate” to make money. To think and trade like a millionaire, you’ll have to stop doing this.
Millionaires operate with an attitude of abundance. They don’t feel that they need to make money, and not because they’re millionaires. It’s because they know that there are lots of opportunities, both in the markets and in other businesses, and so they’re not pressured to make a hasty decision on anything. Instead, they want to wait patiently for the most obvious trading opportunities and the safest prospects to come along.
In order to become a successful trader, you need to start trading like a professional. This can be challenging but it is necessary. Making money consistently in the markets will NEVER be achieved by the habits and mindset of a losing trader. Even if you have a $100 trading account, you need to trade it as if you are NOT desperate to grow it too fast, or you will blow it out.
Millionaire traders value their performance in the market
Another trait of successful millionaire trade is that they value their performance more than money. A major distinction between a profitable trader and an unsuccessful one, is that the latter values monetary gains whereas the former primarily values success in trading. When you value your actual performance in the markets, you’ll begin focusing on the most critical things and developing the best trading habits that prevent your success from becoming negative.
Your performance will suffer if you only value money, and when you do so, you will lose sight of all the things you need to do in order to improve it. Be disciplined, avoid overtrading, place longer stops, do not risk too much per trade, etc. It is important to you that you do what it takes to see your equity curve rise consistently.
The key to improving your trading performance is to also value your trading processes and habits. You can easily forget that it’s not just about making money, it’s about SLOWLY making money over time. Making money fast always results in losses.
Millionaire traders value themselves and their abilities
There are many times when traders ignore a perfectly good price action signal because they are afraid, for whatever reason. Their confidence in their trading abilities is low, and they doubt themselves. But often it’s just overthinking that leads to it.
One of the things you’ll have to do is to start feeling and behaving more confidently in your trading skills. Like in other parts of life, the confident people are typically the ones who get the upper hand. In trading too. I am not telling you to be some kind of obnoxious person, but you need some degree of self-assurance, competence, and maturity if you hope to be successful trading. Qualities like anxiety, insecurity, and shyness, do not make for a profitable trading. I’d advise getting rid of them soon.
Just because one is confident does not mean he or she needs to take reckless chances. There is a big difference between a confident and a cocky trader. A cocky trader will take dangerous chances, and this will lead to inevitable defeat. A competent trader sticks to his strategy and executes his trading signals as he sees them, but he isn’t reckless or careless, just confident. Hope that clears things up a little.
How do Millionaire Traders Act?
First, it’s helpful to know how millionaires make trades, but even more helpful to know what they actually do with those trades. After all, it’s one thing to have knowledge of something and an entirely different thing to take it into practice and actually DO it. In other words, I don’t just want you to learn this and not use it in your trading, I want you to put this lesson into action.
Millionaire traders, trade less than you.
If you have been following us for a while you may have heard one of our tips for end of day trading, but let me remind you again about this powerful and proven method. End-of-day trading is how most millionaire traders trade. All it takes is your commitment.
There just aren’t enough opportunities in the market on a day-to-day, week-to-week, or month-to-month basis for most traders to day trade and become really successful at it. Moreover, day-trading can often be a catalyst for people to trade too much, risk too much, and make all the wrong decisions. Honestly, trading too often is really bad. You might not believe me now, but trust me when I tell you that it’s just a matter of time before you discover for yourself!
Millionaire traders control their risk, carefully
The key to trading success is managing position size. If your position size is under control, then it will go a long way in calming your mind down and putting you in the right frame of mind.
Setting your trade size at the dollar risk level you’re OK with, means you stay calm, no matter the outcome, and you’re comfortable that you’ll still be all right if the trade goes bad. in other words, you’re not desperate.
Imagine that you are making consistent profits in the markets for a year, you have followed a plan to get here, and you are comfortable with your risk per trade.
The thought of a loss never gets to you because you always follow the game plan. Every time you examine your charts before you turn on the computer, take time to do the same exercise or a similar one. Regardless of where or when.