10 Important Factors for Successful Trading

Trading is a demanding yet highly rewarding discipline that requires not only a deep understanding of the markets but also emotional control, strategic planning, and continuous learning. The aim of this article is to present ten key factors that distinguish successful traders from those whose long-term success is less likely. Each factor is examined in depth and complemented with practical recommendations for its application in everyday trading.

1. Trader Psychology

The psychological aspect is often the decisive factor between profit and loss. A trader who cannot manage stress, panic during a drawdown, or euphoria after a profit can easily slip into a dangerous spiral of irrational decisions. A professional trader is aware of their mental state and works with it deliberately.

For example, after three consecutive losing trades, a beginner may panic and start “wild” trading with larger volumes, which only deepens the losses. Another case is euphoria after a winning streak, when the trader starts ignoring rules and enters trades without valid signals.

Tip: Dedicate time to mental hygiene. Introduce reflective exercises – for example, keeping a trading journal with notes on emotions or practising meditation to calm the mind.

2. A Solid Trading Plan

A trading plan is the cornerstone of a successful market approach. It is a personal manual that defines your strategy, risk management procedures, markets you trade, and daily routines. Its absence often leads to impulsive and uncoordinated trading.

A quality trading plan should include:

• a definition of the market conditions in which the strategy works best (e.g., trending or ranging environments),

• entry and exit criteria (e.g., a combination of indicators and price patterns),

• precise rules for position sizing and risk management,

• a daily schedule and preparation routine,

• procedures for crisis situations (e.g., after a series of losses),

• methods for evaluating performance and feedback.

Tip: Before each trade, ask yourself, “Is this entry aligned with my plan?” If the answer is not an unequivocal yes, do not trade.

3. Risk Management and Strategy Testing

Without capital protection, no trader can survive in the long run. Reckless risk-taking often looks like a shortcut to high profit but usually leads to rapid account depletion. The key is not only to set maximum risk per trade but also to systematically test your strategy – known as backtesting – on historical data. This process allows traders to verify whether their system has consistency and potential to work in the future.

For example, if a backtest shows that the strategy performed well on EUR/USD between 2020 and 2023 under certain volatility but failed during low-volatility periods, the trader should consider filtering out such days from their trading schedule.

Tip: Define your maximum risk per trade (e.g., 0.5–1% of the account) and never exceed it. Conduct regular backtesting of your strategy across different markets and timeframes, and record the results. Optimise only after thorough analysis.

4. Education and Personal Development

Trading is a rapidly evolving environment. Strategies that worked a year ago may not work today. A trader who keeps learning constantly gains a competitive edge.

Tip: Reserve weekly time purely for study – whether books, courses, or market analyses. Monitor markets, read news, and remain open to new approaches.

5. Technical and Fundamental Analysis

Combining technical and fundamental analysis provides traders with a comprehensive market understanding that cannot be achieved through one approach alone.

Technical analysis focuses on chart patterns, price formations, volumes, and indicators. It helps identify trends, reversals, or entry and exit points. Fundamental analysis, on the other hand, monitors macroeconomic data, political events, central bank decisions, and other factors influencing the long-term market direction.

Tip: When preparing for your trading day, combine technical analysis (e.g., trendlines, moving averages, RSI) with the economic calendar. Avoid opening positions ahead of key releases such as NFP or CPI.

6. Daily Routine and Discipline

Successful traders stick to a structured daily routine. They start with market sentiment analysis, prepare scenarios, and constantly monitor adherence to their rules.

A typical day might look like this: in the morning between 7:30 and 8:00, preparation takes place – reviewing the economic calendar, market news, and defining key levels. From 9:00, they watch the European market open and wait for confirmed entry signals. After finishing trading (e.g., at 14:00), they record trades in the journal, review feedback, and make necessary adjustments to the plan.

Tip: Set fixed times for preparation and end-of-day review. Following a routine increases efficiency, reduces stress, and supports long-term discipline.

7. Realistic Expectations

Unrealistic expectations often lead to frustration and impulsive trading. Realistic goals foster patience, calmness, and strategic thinking.

Beginners often enter trading expecting to generate 10% weekly or replace a full-time income within the first months. Such expectations are not only unrealistic but also dangerous.

Tip: Focus on long-term success metrics such as consistency, adherence to your plan, or proper risk management, rather than short-term profits.

8. Trading Journal and Feedback

Recording trades and analysing them is a key tool for growth. Identifying behaviour patterns, recurring mistakes, or strengths is only possible with data.

• A trading journal should include:

• date and time of entry and exit,

• instrument name and trade direction,

• entry and exit price, position size, RRR, and order type,

• reason for entry and market context,

• notes on emotions and mental state,

• screenshots of the chart before entry and after exit,

• final evaluation of the trade.

Tip: Record not only technical data but also your emotions, confidence level, or focus.

9. Patience and Persistence

The path to success is not linear. Periods of stagnation, frustration, and losses will come. The key is how a trader responds – whether they analyse and improve or fall into panic.

Tip: Set up a plan for crisis situations. If trading is not going well, reduce position size, switch to demo mode, or take a controlled break.

10. Performance Evaluation Through Metrics

Profitability alone is not enough. A trader’s quality is measured by consistency, efficiency, and risk control.

For example, two traders may each make 5% profit in a month. One has a profit factor of 2, a consistent risk of 1% per trade, and a win rate of 55%. The other achieved the same profit with a single extremely risky trade with a low probability of success. Which of them is sustainable in the long term?

Tip: Regularly evaluate profit factor, average RRR, win rate, max drawdown, and Sharpe ratio. Identify weaknesses and work on eliminating them.

Conclusion

Successful trading is not a matter of luck. It is a set of habits, skills, and the right mindset. By following the ten factors above, you create a solid foundation on which to build a long-term, sustainable and professional trading career. On this journey, FTMO can provide both support and trust.