Thread by @SJosephBurns

7 Habits of Highly Profitable Traders:

A thread 🧵👇

Traders must have the perseverance to stick to trading until they are successful. Some of the best traders are ones that had the strength to push through the pain, learn from their mistakes, & keep at it until they made it. All profitable traders had to survive the learning curve

Great traders cut losing trades short. The ability to accept that you are wrong and put your ego aside is the key to professional success. Setting stops is one of the top skills for a trader to learn. They need to keep losses small but give room for a profitable trade to play out

Letting a winning trade run as far as it can go on your time-frame, insures that you have big enough wins to cover your small losing trades. The key to profitability is managing a winning trade for maximize win size.

Avoiding the risk of ruin by using a small portion of your capital on each trade. If you risk it all often enough, you will lose it all eventually. Small win percentages can compound into huge gains without the risk of large drawdowns.

Being reactive instead of predictive on actual price action is a winning principle I have seen in many rich traders. Letting price lead the way is one of best strategies for cig wins through catching trends.

Letting price action give you signals is trading reality. Trading based on what the price should be is wishful thinking. It can take a long time for a market price to become what you thing it should be while trends can happen fast for no apparent reason.

Great traders are bullish in uptrends, & bearish in downtrends, until the end when the trend bends.
Great traders care about making money more than anything else; proving they are right, showing off, or predicting the future is not as important as hearing the cash register ring