Ten Things Successful Investors & Traders Do

This week’s series of articles are about the ten things (tasks) that successful investors and traders do.

The list of ten tasks appears at page 40, Footnote 4 in Financial Freedom Through Electronic Day Trading by Van K. Tharp and Brian June. The list was based on research by Van K. Tharp involving studying hundreds of successful investors and traders to determine what they had in common.

Here are 3 of the 10 tasks.

1. Develop a low risk idea. Observe, research and test what elements of a trading system that you think would result in profits that are larger than losses.

2. Self-examination. Ask yourself if you’re emotionally fit to trade. If not, don’t do it until you are. Do this every time before you enter any trading orders. Day traders have to do this daily. Others have to do it every time before entering a trading order.

3. Mental Rehearsal. Imagine yourself going through the motions of trading. Mentally practice your winning moves based on the Low Risk Idea that you developed in Task #1. How often you do this depends on your desired frequency of trading. If you day trade, you'll need to do this daily. If you only trade once a week or once a month, you can do it less frequently.

continued tomorrow ...

Copyright 2007 Raymond T. Lee. All rights reserved.
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