Quite often I get asked the question, what are the qualities that most leading traders/investors have? Furthermore, I'm also asked, Can those traits be developed? When there are many, many features that I've noticed in top traders, I though I'd pick four of them in this tip and talk about each of them temporarily. In other future hints, I'll be talking about a number of them in considerably more detail.

Trait 1: Personal Responsibility.

I feel the most important trait that all top traders have (or leading people in any area ) is the capability to assume complete responsibility for what happens to them. And for leading traders and investors, this means that they assume complete responsibility for their investments results. This implies that in case you lose money it's not the market's fault, it's not your advisor's fault, it's not your system's fault, or the fault of anything else. On the contrary, it's a direct outcome of everything you did. You're able to learn directly from your mistakes, when you assume this mindset and trading becomes. Whenever you don't assume this mindset, then you must repeat your mistakes over and over again because you feel that you were a victim of some outside forces. Which would you rather have #8211; the capability to learn from your mistakes or the tendency to repeat them over and over again?

Trait 2: Commnt.

Getting a prosperous investor/trader demands hard work. You must get to know yourself because you are the origin of your trading performance. You must develop a business plan to guide your trading. You must develop and test three or four egies that fit within the big picture (as you see it) and then become a part of your business egy. You must do your homework daily. You must follow certain areas during the day that we call the ten tasks of trading. And all this demands a lot of energy and time. And in my experience, it's only the people who are really dedied who will put in the work necessary to become successful.

Trait 3: Mental State Control.

I'm both a coach for traders along with a modeler of top trading behaviour. As a trainer I assist leading traders follow the fundamentals (some of which I'm outlining here). And as a modeler, I determine exactly what top traders perform in common and those qualities really become the fundamentals that I teach. By way of example, there are ten tasks of trading I expect every one of my customers to follow daily. But the key to following those tasks is plogical state control. Each task requires a particular mental state in order to execute it correctly and you should have the skill to step within that state and perform the task.

By way of example, one of the ten tasks of trading would be that the action step of pulling the trigger. The mental state required is 100% commnt to act. There is no thinking involved, just 100% action. You should know exactly what to do when you get this signal because you have already developed a system that operates. Thus, your work is simply to act. Think about when the tiger begins to leap on the antelope. He does not suddenly think to himself, is that a good idea? If he did this, he would likely miss the antelope and split his back. No, his plogical state is 100% commnt. Well, each crucial task of trading demands a particular mental state and you must have the ability to step inside that state.

Trait 4: Top-Down Discipline.

I'm in the process of developing a new workshop entitled 17 Steps to Becoming a Fantastic Trader. One of those steps entails developing upper discipline. In developing this sort of field, you must go through these measures: Write out your fantasy life. What do you want to be, do, see, experience, and have in your lifetime in order for it to be ideal? Write this out completely. Write down the reason for that fantasy life. Write off your mission, your goal and every one the whys behind this fantasy life. This step helps you get excited about achieving it. Write down your goals for the next calendar year. Write down the purpose of every objective. Write a set of action steps for each objective. And every action step (in case it takes longer a week for one to finish) could be considered a different goal with a goal behind it and a set of action steps supporting that. The web outcome of following these measures is that you develop a top notch discipline that helps you develop commnt and achieve almost anything you set your mind to achieving. Now let's look at what we have in those four qualities.

First you have a top down subject that actually helps you achieve almost anything you set your mind to achieving. Next you have the capacity to get yourself into the proper mental state to do anything you need to perform with excellence. Third, you have the commnt to determine your goals through to the finish. And finally, but keep in mind I said it you believe that you are personally responsible for what occurs to you #8211; so that you can learn from your mistakes.

Now, do not you agree that with these four qualities, you can achieve peak performance for a trader or almost anything else you set your mind to doing?


Van K. Tharp, Ph.D..