Do you aspire to achieve success as a trader? If so, there are four agreements you need to make first. Don Miguel Ruiz, a Mexican author, has inspired many with his book titled 'The Four Agreements', which discusses principles for attaining success. How can these four agreements be applied in the trading world?
- Honor Your Word
In trading environments like Wall Street, the initial impression can often be one of chaos and lack of order. However, amidst this chaos, traders adhere to specific codes that aid them in achieving success. Every word, gesture, or signal carries its own significance and can greatly impact trading outcomes. Honoring your word means upholding commitments and promises made. As a trader, honesty and transparency in communication with clients are key to building a good reputation.
- Avoid Subjective Judgments
When facing challenges in trading, it's easy for a trader to blame the market and feel that it's always working against them. However, this is a subjective judgment that doesn't help. The market moves according to the desires of its participants, and as a trader, it's crucial to assess the market objectively. Evaluating trading methods and maintaining consistency in executing trading plans are more productive steps than blaming the market.
- Refrain from Hasty Assumptions
A common mistake made by traders is jumping to conclusions or making unfounded assumptions too quickly. This often becomes a primary cause of losses in trading. Successful traders are those who make decisions based on thorough analysis and strong evidence, rather than mere guesswork or assumptions.
- Strive for Excellence
Striving for excellence is a principle that's often heard but difficult to implement. As a trader, it's important to ensure that you genuinely implement risk management and consistently improve your trading plan. Trading is not an easy job, but with commitment and dedication to doing your best, you can increase your chances of long-term success.
So, if you aim to achieve success in trading, start by embracing these four agreements and committing to doing your best in every step of your trading journey.
.jpg)
.png)
.jpg)
.png)
