Traders have a variety of different trading approaches and styles, but despite these differences, those who are consistently profitable share a lot of traits and attributes. In this article we will review these key attributes that help lead to long-term success in the trading business.

One of first factors of operating a profitable trading enterprise is to have sufficient capitalization. Without adequate capitalization, most respective trading skills are rendered academic. Trading success is often based on the ability to endure a string of limited losses and to be able to benefit from the more sizable winners. Lack of funds can turn the most powerful trading strategy to an ineffective approach.

The fact is that the reason why most new traders fail is that they lack money. Successful traders treat trading like a business, which requires time, effort and enough capital to hang in there until the business is paying for itself.

Also, a profitable trader certainly needs a specific goal and plan clearly outlined and in place. Regardless whether a trader uses a strictly mechanical trading system or a set of general trading principles, successful traders have clear trading goals and logical plans to reach them. Based on the long study and observation of the markets, they develop an idea of what is possible, establish trading goals and implement a plan to achieve them.

Successful traders pay close attention to risk control and money management. Even the best traders from time to time have more losing trades than winning trades. The key is to manage losses, so that small ones do not become big ones. Profitable traders will be the first to admit that risk control and money management strategies are more important than the actual buy and sell signals they rely on.

In addition, a good trader needs to be able to accept losses and understand that it is part of doing business. They have the capability to admit when they are wrong, and get out of the trade without damaging their ego or destroying their confidence. They have confidence in what they are doing. They do their own homework and do not accept other traders’ opinions as gospel.

The bottom line is that if the trader does not believe in what they are doing he or she will not have the nerve to follow forward with their trading plan even if it is a potentially profitable one. As you continue to advance in your trading career, keep these successful trader characteristics in mind and definitely make every effort to cultivate them in yourself.

Happy Trading.


Jeff Neal 
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
Visit Jeff’s Forum