Many traders set out on a journey and focus largely on finding the right method and increasing their skill set around putting that into action. Of course, having a method with an edge is necessary to be profitable, but there’s a lot more to becoming an elite trader.
Here are 7 essentials to become an elite trader.
1. Trade methods with a strong positive equity curve over a large sample of trades.
Being equipped with at least one trading method with an edge is essential to successful trading. Every trading method can have its day of winning; such is the law of probability. What I’m referring to is one that has a positive equity curve over the long term, a large sample of trades.
2. Develop an exceptional attention to detail to become error free.
There’s no room for being sloppy in trading. You must have exceptional attention to detail and put in place processes and procedures that support you to identify and prevent errors before they happen.
Mistakes can be costly and even terminal when dealing with leveraged products. Accuracy and attention to detail are a learned skill that’s essential to master for elite trading.
3. Maintain a healthy body and mind.
Top trading results require sound and effective thinking on each day you trade. It’s important to stay in excellent health so you’re fit in body and mind to attend to the markets with clear thinking as and when your trading plan requires it. Regular days in bed sick or being affected by alcohol or drugs must be avoided, because these will adversely impact your results.
4. Seek to maintain emotional stability and absence of conflict.
Emotional turmoil can inflict its hand on some traders in the form of new love, divorce, additions to the family, sickness of loved ones, death, and situations of conflict or any number of life’s stresses that may be thrown at us.
Although some of these are very sad and unavoidable, we can choose to some degree how we let things affect us. With more minor conflicts and upsets we can learn to be emotionally resilient to them.
5. Be a person who can wait for delayed gratification.
If you take a look at any real equity curve of trading on a live account, you’ll see that there are always periods of drawdown in amongst the periods of equity progress.
These periods of drawdown can occur at any time and can be particularly punishing if they occur at the start of a person’s trading experience or at the beginning of doing something new, like adding on a new strategy. Reaching the rewards of trading can largely be about sticking at it until the good times rein down, requiring the trader to keep going and demonstrate the ability to wait through delayed gratification.
With the effect of probability on the outcome of our trading results, waiting for the good times and not stopping and locking in losses can be a significant reason for a traders success.
6. Learn to accept “good” losses.
We will never become an elite trader without experiencing losses along the way. How we deal with losses and view them is important for our progress as a trader.
Losses are an essential part of trading and winning. It’s important to have a healthy attitude toward losses and to recognize a good one, that’s just part and parcel of trading, versus losses that are bad, such as those due to avoidable human error.
7. Create a feedback loop for continuous improvement.
Continuous self-improvement and review is a necessary part of growing and achieving. It’s important to capture specific data that allows you to analyze your performance in an objective manner, providing valuable data that helps you identify and then act on key areas for improvement.
An effective process allows you to zero in on aspects of your performance, your broker’s performance, system performance and the effect of money management.
Conclusion
Becoming an elite trader is so much more than just having a top trading method. Your journey as a trader can be very personally rewarding as you grow and develop as a person on your quest for top trading results. You can achieve measurable progress as a trader if you realize and work towards a balanced and well-rounded approach to your trading, focused on the 7 essentials to become an elite trader.
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