For the most part, trading success comes from years of experience, lots of screen time and a certain set of universal qualities. Fortunately, these qualities are all attainable with the right frame of mind. The following article should get you to think critically about your own trading habits so that you can develop better ones that are more conducive to success.

The following is our list of the five characteristics every highly successful trader possesses.

1. Discipline

This one seems obvious, but it is rarely demonstrated. Discipline is one of the most critical aspects to becoming a successful trader and must be demonstrated at all times if you’re going to achieve lasting success in the markets. Discipline is all about sticking to your plan and not letting emotion get the best of you. Even risky trades require discipline because a disciplined trader knows how and when to take calculated risks. By becoming more disciplined, you master your trading psychology, which is key to your overall success.

2. Student of the Market

A highly successful trader never stops learning about the market. They are constantly plugged into the economic calendar, financial news and other factors that can potentially impact their trades. They are constantly refining their trading strategy based on new information. They have mastered both fundamental and technical analysis and are expert researchers. It’s no coincidence that the most successful traders are often the most knowledgeable. If you’re passionate about becoming a successful trader, you should be prepared to become a lifelong student of the market.

3. Proactive, Not Reactive

Successful traders pursue the markets intelligently and are rarely surprised by the outcome. They may not always be right, but they certainly don’t chase the markets and don’t overreact or make hasty decisions based on emotion. The world of financial trading requires meticulous planning and vision. By being proactive in your trading strategy, you have a better chance of anticipating the markets rather than just reacting to unforeseen circumstances.

4. Being an Early Riser

While most global stock exchanges open after 9:00 am, a successful trader wakes up well before then in order to plan for the day. If you’re trading forex, the market never sleeps between Monday and Friday, which means you should wake up early in order to anticipate key market-moving events. By rising early, successful traders can set up their charts, prepare for market-moving events and get a sense of what’s happening in international markets.

5. Keeping Stress at Bay

The fast-paced, global nature of the financial markets can cause a lot of stress, especially if you’re trading significant capital. Your ability to manage stress is key to your longevity and success as a trader. There are several strategies you can use to manage stress, including balancing your life outside of the markets, taking necessary days off and becoming a more knowledgeable investor. By becoming a disciplined, proactive, lifelong student of the market, you are setting yourself up for success. A more successful trader is a more confident trader, and these characteristics will help you cope with stress and anxiety.

Conclusion

As you can see, becoming a successful trader is not some abstract concept that only a select few can attain. It’s available to anyone who is committed and passionate about what they do. These characteristics are not innate, but can be cultivated clear intent, practice and motivation.