All the very best traders and investors have a method that will give them an edge. Having an edge means the odds, or probabilities are in your favor each time a trade is initiated. The method implemented depends upon the individual traders philosophy. It can be technically based, fundamentally based, or a combination of both. It can be short-term or long-term. There are very successful traders with methods that are completely different. You simply can not win unless you have a method that puts the odds in your favor. This includes the stock market, or any other trading venue.

Discipline is an absolutely crucial element. All the great traders and investors know that without discipline, it does not matter how good your trading plan or method is. You need discipline to implement your trading plan. You can not be second-guessing your entry signal, exit signal, and money management rules. Basically, you must have the discipline to completely follow every part of your trading plan. This will also help keep emotions out of your trading.

Top traders and investors fully understand that sometimes a trade you put on, is not going to work out. They realize that some trades are going to result in a loss. The key is to keep all losses small. There are fantastic traders in the stock market and futures market, who only win about 50% of their trades. The key is their winning trades tend to result in substantial profits, while their losing trades result in only small losses. The best traders know they will win over the long run. Taking a small loss does not bother a great trader at all.

Confidence is a characteristic the very best traders and investors seem to have in abundance. They totally believe in their ability to achieve superior trading results in the long run. The reason for this confidence centers around their trading method, and ability to implement proper trading psychology. Top traders know the odds are in their favor on each and every trade they make. In their mind, there is no question, superior results are going to happen, whether in the stock market, or any other trading venue.

Hope is generally a positive emotion which, at least sometimes, helps sooth our very soul. After all, we all hope the future is going to be a good one. The worlds best traders know, that in their business, hope is not a good thing at all. As an example, when the market goes against you, the best action you can take, is to exit the position with only a small loss. Many traders will hang on to a losing position, in the hope, it will reverse, and go back in their direction. Sometimes the market does not reverse, and their trading account takes a major loss. Top traders and investors keep “hope”, and other emotions out of their trading equation.

Flexibility is the mark of a great trader. Traders who are very narrow in their approach, and totally cemented in their ways can sometimes get into big trouble. The reason is that markets are dynamic. Sometimes, what works in one period, might not work in another. A savvy trader will make the necessary changes for superior results. The best traders and investors have the ability to adapt to changing conditions in the market. Sometimes one minor alteration in their method can make all the difference in the world. This includes the stock market, and the commodities market.

The most successful traders and investors concentrate on the trading process, and not the results. The process should be the main area of focus. It is the process that ultimately produces your results. With a sound process, the results will simply take care of themselves.

A main reason why the very best traders achieve superior results, is because they have a trading plan. A trading plan requires a method, along with a money management system, entry and exit rules. A trading plan also needs to give you an edge, or in other words, put the odds in your favor for each trade you make. Your trading plan should also match your personality. This will help make it easier to stay disciplined, and follow your plan. A good trading plan can be your ticket to market success.

Great traders always do their own research and market analysis. They think and act independently from the crowd. One of the biggest mistakes a trader can make, is listening to, and then acting upon, what a so-called expert says about a certain market or stock. This is almost always a recipe for disaster, when it comes to your trading account. Most of these so-called experts do not have a clue what is going on in the stock market, or any other trading venue. A lot of money has been lost listening to the opinions of others. The best traders always make their own trading decisions, based on proper market analysis.

Patience is one of the most important virtues, when it comes to trading the stock market, or any other trading venue. It is very important to wait for just the right trading opportunity to present itself. You want to have as many factors as possible in your favor, before taking a position in the market. This puts the odds in your favor on each and every trade you make. With the probabilities in their favor, this is how great stock market operators amass their fortunes. Another area of patience is the ability to stay with a trade that is working. You need to make a substantial profit when a trade strongly goes your way. The emotion of fear can cause traders to exit a winning position, even when there is no reason to do so. Always stay with a winning position until, through proper analysis, you get a valid signal to close out your trade.