5 Things Successful Traders Do Differently
You have the perfect trading system. You know that it works, because you have tested it and proven it to yourself. You know other people who have been trading with the same method and are doing great. And yet, you are still struggling to succeed. You are easily discouraged, but still determined to make it. Why are those other traders doing so well while you are lagging behind?
Scenarios like the one above are very common. You can hand two traders the exact same method, and the method can suit both traders’ personalities. Both can be trained in proper money management. And yet, you will see one trader succeed while the other continues to fail. What is the difference between the two? It all comes down to psychology, specifically the psychology of success. Here are 5 things that successful traders do differently.
- They do not confuse knowledge with action.
You can accumulate information on trading all day long and become an absolute expert—and still fail. You can in fact become a kind of expert novice—someone who knows all there is to know about trading binary options without actually trading them. There are a number of reasons this can happen of course, some of which may be out of control (lack of trading capital, time constraints, etc.). For a lot of people though, it is the fear of failure, or even the fear of success. Not all people are consciously aware of what is driving them to stand still. Learning all you can about binary options is key, but never forget that if you do not put your knowledge to use, it is without value.
- They do not over-think what they have to do.
How do you feel when you sit down to try something new, like binary options trading? Do you feel overwhelmed by all the steps involved with learning and trading? Does that sense of overwhelm paralyze you into inaction? If so, you may be over-thinking. Obviously you do not want to shut your brain off when you are trading, but there is such a thing as trying to take on too much at once psychologically.
The best way to tackle over-thinking is to plan ahead, but not become so wrapped up in your plans you cannot see what is right in front of you. Write down any long-term trading plans, and also make a checklist of steps involved with trading. Once you have done that, focus on the next couple of steps which are right ahead of you at any moment. If you try to look too far ahead, you will simply scatter your mind and not be able to concentrate. Instead of constantly over-thinking, start doing. Use your checklist and your trading plan to keep you on track. Externalize those overburdened thoughts so that you can act unimpeded by over-thinking.
- They step outside their comfort zone.
Successful binary traders, and successful people in all walks of life, step outside their comfort zones regularly. Actually, a better phrase might be “complacency zone.” After all, you are not necessarily comfortable in your complacency zone. You may be thinking about learning how to trade binary options so that you can live more comfortably with greater financial resources and success. But that does not mean that there is not a temptation to sit right where you are. After all, trading involves embarking into the great unknown, and that is always scary, even when it is likely to be beneficial.
You may find yourself struggling with this issue within the framework of your trading as well. For example, you might become comfortable with a particular trading system. That system might stop functioning on the level you need it to, but you may feel uncomfortable making changes to improve it. Successful people force themselves to face their discomfort and their fear of the unknown. They climb outside their comfort zone instead of falling into complacency. They do what they have to do in order to progress.
- They keep concrete records of their activities and review them regularly.
If you do not have a spreadsheet where you are tracking your wins, losses, and the logic that accompanied your trades, you should start one now, along with a comprehensive trading journal. Successful traders do not meander through their careers without keeping records. Records are vital for a couple of reasons. Firstly, they keep you honest, and secondly, they give you information which is essential if you want to keep winning and prevent future losses. When you do not keep detailed records and review them often, you are leaving your fate up to chance. Keeping records scares some people, both because it involves effort, and because it exposes mistakes. But until you are willing to confront your mistakes, you will never make it in binary options trading.
- They live balanced, healthy lives.
One surefire way to destroy a trading career is to maintain an imbalanced lifestyle. This is just as true for traders who invest all their time and money into trading as it is for those who invest too little. You have to put your energy into trading, but you cannot put all of it there, or you will be burning the candle at both ends. Take care of all your responsibilities. Do not neglect your day job, your health, your friends, or your family. Successful traders set aside time to relax, work on other projects, and spend quality time with loved ones.
Hopefully now you have more perspective on the psychology of success, and how you can cultivate a state of mind which is conducive to success. If you are feeling lost with your trading, mimic more successful traders. Take action, stop over-thinking, step outside your comfort zone, keep records, and live a healthy, balanced life. You may be surprised what a difference taking these steps can make in your trading!