10 Habits Of Highly Profitable Traders [Slideshow]

"We first make our habits, and then our habits make us."

-- John Dryden


Good trading habits are powerful tools when it comes to trading. By developing and following trading habits, traders can help increase their profitability, protect their trading capital and improve their overall trading performance.

For instance, following a well-tested, simple trading strategy that you strongly believe in can make the difference between success and failure in trading. I've seen countless folks come to the market with "can't miss" strategies that they read about... maybe even studied... but haven't tested. Their results are predictable. The truth is, almost any simple strategy that follows basic price action fundamentals can yield profits. But if the trader doesn't truly understand the strategy, any positive results will ultimately fade away.

Another habit worth developing is following a pre-defined trading plan that's wrapped around the aforementioned strategy is essential for any successful trader. Any plan should include defining risk management parameters, entry and exit strategies, and position sizing guidelines that will allow the trader to better manage their trading activities. Furthermore, by having trading rules in place, helps traders avoid impulsive decisions which invariably lead to losses.

Another important habit every successful trader needs is the tendency to stick to his plan [rules] no matter what happens in the market. This means that even if the trading plan isn’t performing as desired in any given moment, the trader should remain disciplined and stick to it rather than deviating from it and risking losses. Remember... review, analysis and modification should always happen beyond the bounds of trading hours or when one is in a position.

Finally, another good trading habit to develop is the ability to exercise trading patience. Trading is often a long-term game [even intraday] and trading too frequently can be detrimental to trading success. By remaining patient, traders can better manage their trading activities and increase their chances of successful trades over time.

Overall, developing good trading habits is essential for any successful trader. By having pre-defined rules, sticking to these rules no matter what happens and being patient with trading decisions, traders are more likely to achieve profitability and protect their trading capital.

You can see a few more of my own habits in the slideshow below. Note that I created the slideshow almost 10 years ago... and it still works... all of the tenets remain valid.