The Road to Successful Trading

 
Identifying your Strengths and Weaknesses 
Trading requires as much honesty as is objectively possible. To be able to go over each trade 
and determine what you did right and what you did wrong requires putting ego aside for the 
benefit of becoming a better trader. You have to be able to admit “I was wrong”. With that 
being said, you can move foreword and find out why you were wrong and try to learn from 
the loss.
You may feel that you can be honest with yourself but ego is a very strong factor in forming 
your self image. You must ask yourself if the goal is to become successful in reaching your 
goals or is trading really just an exercise in trying to pump up your self image. If it is the 
later, there are less expensive and more easily achievable ways to accomplish that goal.
How to Design and Construct An Effective Trading Plan 
19
At this point in the process of self analysis, it might be a good idea to sit down with 
somebody who really understands you and knows what makes you tick. Of course, they may 
be a bit off in their analysis (your ego will whisper that in your ear) but at least some 

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objective input may help you answer these important questions more accurately. More than 
likely, you know your strengths but admitting to weaknesses is a much more difficult task.
Statements you may not want to hear: 
• 
You may think you are a cold, calculating trading machine but others may see you as 
emotional and too influenced by the opinions of others. 
• 
You think you are decisive but you spouse thinks you are wishy-washy. 
• 
You think you are good with money but others may point out your propensity to 
make emotional purchases. 
• 
You think you are ready to work independently but you are really a social animal and 
will miss the “office politic”. 
• 
You think you can accept losing but you really become depressed and blame others 
for your losses. 
• 
You think you are persistent and don’t give up easily but your mother says once you 
get burned you move on to other things. 
• 
You think you were found in a reed cradle floating down a river but you are actually 
just like everybody else.
As a trader, you want to become the seeker of the cold, hard truth about yourself. The goal 
of a trader is to be successful as measured by the achievement of pre established goals and 
objectives. Anything else is rather meaningless. The job of the trader is to constantly 
monitor and make sure that the trading plan is being followed and that the trader is keeping 
the proper attitude.
Attitude 
Consider that we are brought up to compete and aspire to win. Losing is for losers. From an 
early age, we are taught losing is a negative thing. However, as winners mature they learn 
that mistakes are really learning opportunities. Traders must have this attitude at all times.
It’s normal to be a bit peeved when losing but a successful trader learns to swallow the 
emotion, analyze what happened from the losing trade, and move on. This is a necessary 
attitude for a trader and an excellent one for life in general.