As the trading community grows, ambitious traders should understand that success or failure depends as much on emotions as on trading skills.
Here's how successful traders do it:
"Fight or Flight"
Inside every person who dabbles in trading is an emotional "caveman" who reacts with either fear or logic when faced with uncertainty.
Without logic, the "flight" response takes over; as if encountering a bear or a bull in nature.
Successful traders therefore choose to "fight."
They overcome the internal emotional triggers that can get in their way.
This is how they prepare for all trading challenges.
"Plan of Attack"
Successful traders always have a plan of attack that spells out exactly what they will do, when they will do it, and how they will do it.
A trading plan and strategy are essential.
For some traders, the question of when to enter and exit is an eternal mystery.
Don't be one of those traders.
Be the better trader. Be the one who has a "plan of attack."
"Stay on top of your game"
As a trader, you should already know what's going on in the markets in order to identify new opportunities or eliminate existing opportunities in a timely manner.
Without access to timely information, it's impossible to react accurately or effectively to the headlines.
Successful traders obtain relevant economic reports and headlines about political events. And they trade based on them.