Sure-Fire Futures Trader Money Loser - Negative Personality Traits

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There are certain psychological characteristics that can negatively impact your ability to succeed as a futures trader. Learn to recognize these behaviors in yourself and guard against them.

THE CHEAPSKATE TRADER

Many people are foolishly cheap. They are so anxious to start trading on the futures markets that they ignore the necessity of first acquiring the proper education, tools and software to succeed. These people will lose more money in their first round of trades than they would have spent on the tools that would have allowed them to succeed. You can not be "penny wise but pound foolish," as my grandmother would say. Do not nickel and dime your training budget. If you truly want to succeed as a futures trader, spend the money to learn from the best and acquire the best tools available.

THE IMPATIENT TRADER

We lived in a society increasingly driven by instant gratification. We do not want to wait for it or earn it; we want it now! Futures trading is a fast-paced, risk-filled environment that seems to attract people who like to live in the fast lane. These people are so blinded by the dream of instant wealth that they neglect their training, fail to take the time to develop a reliable system, refuse to stick with their system and, as a result, crash and burn. As grandmother would say, "You have to crawl before you walk and walk before you run." If you want to succeed as a futures trader, slow down and take the time to learn the ropes and develop and practice your system.

THE GREEDY TRADER

Futures trading is not the way to get rich quick, though some seminar organizers use that as a marketing ploy to lure the unwary. Successful futures traders are not gamblers. You can not succeed by trading out of greed or desperation; or as my grandmother would say, "A fool and his money are soon parted." Using emotion as a basis for trading is a quick path to failure. Successful futures traders learn all they can, develop their system, work it and stick to it. Success as a futures trader comes from accumulated profits over time (often small at first), not one big score.

THE OVERCONFIDENT TRADER

If you want to succeed as a futures trader, park your ego at the door. Ego distorts rational thinking. The overconfident trader allows emotion to rule his actions. He is so certain that he is right that he will overstay a position to avoid admitting he was wrong. The market is fluid, ever changing. A futures trader must also be fluid and be able to change position in order to succeed. You will never be smarter than the market; the market will always win. As grandmother would say, "Pride goeth before the fall," to which granddad would add, "Do not bump your nose on the way down."

We all have at least some of these traits; however, futures traders must be vigilant that quirks of personality do not become liabilities on the road to success.

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Source by William Mccready