3 Important Points To Understand The Psychology Of A Successful Trader

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3 Important Points To Understand The Psychology Of A Successful Trader

3 Important Points To Understand The Psychology Of A Successful Trader


If you want to achieve success in trading, you have to understand the psychology of a successful trader. One of the hardest things to apply in trading is if you want to become a consistently profitable trader, you have to think and act like one. Your psychology plays the most important role when it comes to trading. So, in this article, we will try to understand the psychology of successful traders.

If you desire to be a successful trader, try to follow and replicate the mental traits, attitudes, belief systems, and trading processes of the ones who have already gained success in this field. This is a simple process. Also, you must have a clear understanding of what changes you have to make in your system.

The main important reason because of which many traders fail at trading is they don’t want to do anything consistently which is boring and somewhat uncomfortable. Even when it comes to their health, they know what exactly needs to be done to stay fit but they don’t do it regularly even when they are aware of the consequences.

What Do Successful Traders Value the most?

The answer to this question is very simple and short. They value abundance and opportunity the most.

Want to know the fastest way to blow up your account? Trade desperately without even knowing that you are doing it. What does it mean by “trading with desperation”?

Trading with desperation means that you are “eager” to make money as fast as possible and this is the reason because of which many traders can’t make money in a market. In some cases, traders don’t even know that they are trading desperately.

When you trade without a trading edge or when you increase your position size beyond your comfort or you don’t follow your trading plan while trading then it can be said that you are trading desperately to make money. You should stop this as fast as you can if you want to think and trade like a successful trader.

What Is The Psychology Of A Successful Trader?

1. Successful traders operate from a mindset of abundance

They don’t feel desperate to make money Because they know that this is not the last opportunity, the market will give you a lot of opportunities if you stay in the market for a longer time. Instead of taking every opportunity, they wait patiently for the most favorable trade setup or perhaps the lower risk opportunity to come along.

I know it can be difficult for you initially, but honestly, if you want to become successful in trading you have to trade like a professional trader. If you are trading desperately and if you are not in the right mindset then you are not going to make money in the markets. So, even if you have an RS. 10000 account you have to trade with discipline and without having the urge to grow it too fast.

2. Successful Traders Value Their Performance Rather Than Profits

One of the biggest differences between a successful trader and a losing trader is successful traders always focus on their performance rather than profits. When you start focusing on the right things, profits will automatically follow you.

On the other side, if making profits is your primary focus, you start to forget all the important aspects of trading. Things like making a trading plan, maintaining the discipline while trading, or Risking too much per trade, etc. So, always focus on your performance and try to improve it.

“The goal of a successful trader is to make the best trades. Money is secondary. “ – Alexander Elder

3. Successful Traders Have Confidence In Their Abilities

Self-doubt often stands as a barrier in trading efficiently. Sometimes, traders don’t take the trade even when there is a perfectly good price action signal. This happens when traders are not confident and constantly doubt their trading ability. Knowing what your trading edge is can help you overcome self-doubt.

One must have confidence in your trading abilities to become a successful trader. When you begin to show confidence in your trading ability, you start attracting success. Fear and insecurities stunt your progress in all areas of life and thus affect your trading. Having solid confidence in yourself and your trading ability is necessary to make money through trading.

“ The top traders that I worked with began their careers with an extensive study of the markets. They developed and refined models of how to trade. They mentally rehearsed what they wanted to do extensively until they had the belief that they would win. At this point, they had both the confidence and the commitment necessary to produce success.” – Dr. Van K. Tharp

This quote explains how one can make a trading system and get confidence in his/her trading ability. There is a large difference between being confident and being cocky while trading. A trader who is cocky or overconfident will take many stupid risks at a time. On the other hand, a confident trader follows his trading plan and implements his trading strategies when he sees any trading opportunity.

How do Successful Traders Act?

Knowing how successful traders think is only half part of the equation, the other half is how they act in live markets.

1. Successful Traders Control Their Risks

Controlling your position size is one of the most important things in trading. Following proper risk management techniques and position sizing will help you to be in the right trading mindset. Also managing your position size is a good example of how you trade with abundance and opportunity, instead of trading desperately.

Taking a trade with manageable quantities indicates that you are OK with whatever outcome and you are not trading desperately to get fast money from the markets.

While trading, our primary goal should be capital preservation rather than making money. Because when you focus on being a defensive trader everything else will automatically go in your Favour. The quote from Paul Tudor Jones who was an American billionaire and hedge fund manager explains the importance of capital preservation in trading.

“I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have” – Paul Tudor Jones.


After reading this blog, just close your eyes and think that you are making a good amount of profit over a long period, you have a proper trading plan which guides you every single time when you trade. You never get upset with your losses because you know that losses are part of this game and as long as you stick to the plan your wins are going to compensate for your losses.

Now, every time you sit down in front of your computer to trade, do this exercise regularly. It will definitely be going to increase your trading performance.

Eventually, our actions depend upon the source of our thinking. Our thoughts control our actions and these thoughts can be positive as well as negative. Hence all of this, trading success, etc. starts in your head like thoughts. So, it becomes very important which things you focus on when you trade.

If you focus on your trading profits and things you are going to buy with these profits, you are not going to be successful in trading and if you focus on your trading performance and implementing the right trading habits then it will surely help you to achieve your financial dream.

So, always try to fill your mind with positive thoughts and you will surely be going to see positive things in your trading and your life as well.

If you want to know more about Risk Management & Intraday Trading Strategies you can refer to our previous blog on

Importance Of Risk Management In Trading and 10 Best Intraday Trading Strategies.


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Happy Learning!


Booming Bulls Academy


  1. That’s a Hell Lot of Knowledge in a Brief and it surely points out to the level of experience you have!

  2. Wow sir wow what a wonderful information, thank you so much for sharing it with us for free. Gratitude
    The complete psychology has been explained here in a very best way.
    thank you

    1. Thank you, Nikul, glad that you find the blog helpful. We constantly try to bring helpful blogs for our traders and will continue doing so.

  3. I read some important topics to become a successful trader,very interesting things was.I think these are the very important steps to become a successful trader, otherwise knowledge is not only the power only to become successful trader but also need strong psychological mind ,how to make you a unique set of mindset to become a trader.so without additional knowledge no one can how to become a successful trader.Thanks booming bulls for this type of wonderful knowledge.

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