Just like with any profession, there are some key habits successful traders adopt in order to continue their success in the market.
Here are some habits of winning traders:
- Traders regularly reflect on their trading performance…
…even if this means relearning the basics. Brushing up on the basics from time to time can give you a new outlook on things you didn’t pick up before as a beginner or intermediate trader. Not only that, but it can also give you an extra motivational push – a reminder of why you got into trading SPY options in the first place. Evaluating your performance as a trading will help you master your trades over time. Make sure to ask yourself, “What could I have done differently? Did I let my emotions get the best of me? Did I enter a trade (good or bad) based on someone else’s opinion to enter? Did I work independently? How did I deal with my losses and how can I deal with them better?”
- Winning traders set goals – big and small, short and long term
Remind yourself of your WHY on a daily basis. WHY did you start trading? Is your goal to buy a yacht? Maybe a small island? Are you a millennial trying to buy a house (shocker!) or maybe travel the world (also shocker!)? Or is your goal maybe to earn x amount of additional income to help support your household finances or fund your retirement.
Whatever it may be, write them down. Clearly define them and have reminders around your desk to keep them in mind at all times. I like to use a vision board.
- Traders are flexible and are always willing to learn
Winning traders are always seeking out the latest news reports, trends, events, etc. every day. A good trader makes learning their daily habit and they stay flexible to the market’s volatility. Successful traders are not ego-invested in their trades and view the market objectively. They can determine what works and throws away what doesn’t work in the trading room.
Maintaining these habits
Implementing these habits are one thing, but actually maintaining them are another. If you go on a strict diet for two weeks, you’ll lose 10 pounds, but once you go back to your old eating habits, you will find that you’ll pack on those 10 pounds and even more.
The same goes for trading. It takes 21 days to form a new habit. So put in the effort for 21 days to form a good new habit and see how it benefits your trading. Make sure these habits are measurable and attainable for you to ensure success.