Business Tips

How work habits of traders affect their results

December 23, 2022

Work habits of traders that help them succeed

Have you ever wondered what successful traders are made of? They seem elusive and mysterious, no one knows a lot of them and everyone wants to be like them. This is because they are scarce. For example, statistics show that over 80% of total traders in the crypto market are losing money or breaking even.

Although each case speaks for itself, there are some characteristics common to those gaining profit. It is by no means a magic formula that you can implement and instantly start making profitable trades. Still, a synthesis of personality, mentality, and knowledge elements can be of use, and you can only improve by having a glimpse at some of the characteristics of the best.

Work habits that will make you a better trader

If you are an aspiring trader, you have to incorporate these four habits into your work in order to make a successful career and avoid failures.

Set realistic goals

Everyone wants to get rich. Remember, it is a slow process directly connected to your knowledge of the matter. Embrace learning as a long journey to profit. This sounds nice but what does it mean?

It means that you need to start small and slowly build your way up. Don’t expect to pull off large ROI numbers for a long time. You need to identify what is profitable over time before trying to get large profits, which takes years to master. Be prepared to invest years of your time into learning trade skills, and there are hundreds of places you can start from. For instance, you can get informed about the latest occurrences in the market on tradecrypto.com, and check out their review of the largest crypto hub here: crypto.com review.

Respect yourself and the time you invested

No one will believe in what you are doing if you do not have a strong foundation of self-belief. If you are serious about trading, then look at yourself as doing serious business — because you are.

This may seem strange, but being too relaxed and perceiving trading as a game can be detrimental and lead to decisions that are not thought through. If you treat trading as a real business, it may yield to you just like a real business does.

Accept the variance

This is not a regular day job. Your profit may be stable long-term if you are good at it but short-term, it never happens. Variance is the very essence of this job.

Paradoxically, you need to be prepared to lose, and lose a lot, in order to win. Most people just want to make money, and it is natural to witness a natural increase in your resources. In this business, however, you have to accept short-term uncertainty for long-term gains.

Manage your risk

Knowledge will come. Good and bad trades will come and go, but a business plan with risk management consideration is even more important than the market itself.

Define your bankroll, and always use a small percentage of it for trades. Never make any exceptions.

Learn on the go and adapt quickly

It’s a jungle out there, and thousands if not millions want the same as you. The few winners will be the ones who solve the problems at hand the fastest.

This includes anticipating and analyzing the market better than others. Even when you have done that, your knowledge is not set in stone. The winners are the ones who implement new ideas and tactics the fastest and take the profit before the competition joins in. A great resource for traders to stay updated with all current important concepts is this exhaustive list of crypto terms.

Don’t make gambling errors

Don’t think like a gambler. You need to completely switch your mindset from gambling to investing. Here are some notable errors in judgment that gamblers make:

“Profit lost means that the trade is bad”: No, it doesn’t. It is all based on probability. If we offered you a dice roll and you lose only if it falls on number one, it will surely happen sometimes, maybe even on the first roll. But that does not make it a bad deal even if you lose, does it?
Trying to get even quickly after you lose has destroyed the lives of many people. Take the loss peacefully, analyze it, then define the next step.

Possess a stable personality overall

You must be in the right state of mind most of the time to keep making profitable moves.

Traders with a well-organized, stable lifestyle and personality will always have the edge over emotionally unstable people, who have mood changes, or vices, or are going through any kind of difficult period in life. If you are not balanced, then you are out to make reckless trading decisions.

Conclusion

Good traders are not necessarily smarter or more talented than you. There is a chance for you to trade and make money if you are ready to engage yourself enough. At least everyone is treated equally in this business, so if you want to be among the profitable minority of less than 20% of traders, get ready for some hard work.