Being successful in stock investing is not just winning tens of trades, it’s much more than that.
It’s not even about how much you increase the size of your portfolio at the end of the year.
Consistent net wins of your trades yearly for decades would mean you’ve been successful with your trading pattern.
Therefore, I’d like to talk about you common behaviors of most successful stock traders across the globe.
Attitude to Stock Market Trading
If you want to start trading stocks or forex, the first thing you should ask yourself is the simple question of why you want to trade on the market.
Trading, for example, also attracts many people who are (consciously or unconsciously) looking for a daily profit.
Those looking for quick profits, excitement tend to be highly speculative on the stock market, says techpally.
Of course, this is not expedient on the stock exchange, but sooner or later leads to horrific losses.
However, if you see trading and investing as a major challenge that you are willing to invest a lot of time and energy to master, then you might be on the right track.
If you also learn from your mistakes, then you have the right attitude to take the step on the stock market.
An absolute stock market debacle is then at least very unlikely, says techpally.
Whether you make profits and maybe even the DAX hitting then depends solely on your approach and your ability to learn.
Your investment or Trading Style
What is your personality? A crucial question for every investor.
You may have suffered losses so far, although you have the potential to become a successful trader or investor.
This could also be because your investment strategy does not match your personality.
There are tons of good investors around the world, and each one of them has a different investment style.
For example, Warren Buffett is a different type of investor than Jim Rogers – and yet both are extremely successful.
Can’t sit in front of the screen all day and watch prices, news and charts?
Then you should not pursue a day trading strategy, ie not take any positions that require you to observe the stock market daily.
If, on the other hand, you constantly fear that you may lose a high profit again, you should not embark on a long-term trend following strategy.
And if you get very excited as soon as you hit the buy or sell button, it is better not to carry out your transactions yourself, but to choose a strategy that is implemented by automatic trading software.
Many more examples could be enumerated, but what matters is this.
Analyze your strengths and weaknesses, then choose the investment strategy that suits you best.
Work on your weaknesses and use your strengths, techpally advised.
Stick to your Strategy and improve it
What’s your strategy? What do you do to make more wins in the stock market?
If you cannot answer this quickly and clearly, you will likely achieve a rather moderate to average return.
Really good investors only have one strategy, which they perfect and then apply flawlessly, patiently, and with discipline.
For example, Warren Buffett has become successful by strictly adhering to Ben Graham’s rules for fundamental investing.
But many successful traders rely exclusively on a certain chart pattern or a technical chart indicator and thus beat the stock market.
An example could be buying a stock that is breaking out to a new all-time high with a large trading volume.
Some traders work with an automated system, Elliot Wave Traders, High-Frequency Traders, etc.
The bottom line: Every successful stockbroker has his tricks.