Kavan Choksi Discusses a Few Positive Mental Qualities of Successful Traders
Janney ClareA lot of traders believe that simply a profitable strategy will lead them to success in the stock market. However, they often forget that the main part of a trade is a person. As Kavan Choksi says, while trading plans, strategies and best practices are certainly important, the behaviour and attitude of the traders also matter a lot.
Kavan Choksi lists a few mental attributes of successful traders
Mastering trading skills and having proper strategies in place are crucial for achieving long-term success in stock market trading. However, no number of books, websites, or mentorship can compensate for a negative attitude and mental obstacles that hinder trading performance from start to finish. This is why many successful traders often exhibit similar psychological traits. Here are a few mental attributes that guide the decision making of successful traders:
- Optimistic attitude: Successful traders typically display a good level of optimism, even when it is not supported by the latest profit and loss statement. These traders know that draw-downs are temporary, and they have the expertise and skills required for building back profits. Successful traders also understand that trading is somewhat of a zero-sum game that divides up winners and losers. Hence, these traders always visualize themselves on the winning side, no matter the short-term results.
- High self-esteem and self-worth: Modern day education system puts a good level of focus on ensuring that the students have sufficient self-esteem and self-worth. Unfortunately, the transition into adulthood may undermine this effort, and cause self-doubt, cynicism and negativity. Such attributes can impact profitability. This happens because the emotional nature of buying, selling, and assuming risk requires visualization of the most positive outcomes, which gets undermined when traders believe they are not good enough to be financially successful. Successful traders usually address the issue of self-doubt and lack of confidence early in their careers. They manage to build their confidence with small steps, by making the right decisions, one at a time.
- A sense of internal power: Successful traders understand that building their personal power offers a direct path to prosperity and success. Hence, they spend a good amount of time reflecting on the sources of conflict in their lives and recognize the ways to defuse stressful situations. These traders do not think of themselves to be victims. Rather, they always try to take personal responsibility when things go wrong.
- Adaptable: All successful traders have the capacity to change circumstances and sudden unexpected events. While these traders do operate with a set of rules, they are not afraid to mix things up and modify their approach as per changes in market conditions.
As Kavan Choksi says, an individual’s experience in the financial markets often tends to mirror their life outside of trading. Destructive habits like smoking, overeating, and drug use are often linked to poor trading performance. Moreover, personal conflicts with spouses, children, and family, along with a lack of exercise, uncontrolled anger, and political obsessions, further worsen the burden. Successful traders dedicate as much effort to resolving personal issues as they do to market preparation. These traders try their best to maintain their health and recognize the importance of recreation for optimal trading performance. When their personal efforts to achieve balance fall short, they seek guidance from professionals.
