People often ask me … what common traits do your best trading students possess?

Interestingly enough, the winning traits I see in promising students differ from those of experienced traders.

Let me explain…

When you’re first starting to trade the stock market, you probably won’t have any idea what you’re doing from a technical standpoint. That’s okay.

My most promising students aren’t always the most technically savvy from day one. It doesn’t matter.

My top student, Jenny Smith, knew NOTHING about the stock market just two years ago. Now, she’s crushing the markets so consistently, her husband calls her his ‘sugar mama!’

When it comes to new students, personality and mindset are far more important than specific knowledge or skills.

In other words, if you don’t have the right mindset, it doesn’t matter how much technical knowledge you’ve accrued … you will inevitably fail.

On the flip side, if you have the right mix of risk tolerance, intelligence, and curiosity … you shouldn’t worry about a lack of technical understanding of the stock market. It’ll come with time. 

REMEMBER: Specific knowledge can always be learned, but it’s nearly impossible to change a poor mindset that’s ingrained in your psyche. 

With that in mind, let’s go over the three personality traits that separate my most promising trading students from the rest of the pack…

Trait #1: Passion

The journey of any future-winning trader always starts in the same place … with a genuine passion for trading.

Like an aspiring professional athlete, your odds of success in the stock market are low. 

The only way you’ll rise above the subpar masses is by wanting success more than the rest. 

Having a hunger, a thirst, and a need to win in the markets is the first step to potential trading success.

As I’m writing this, I can’t help but think back to my pre-trading days as a general accountant…

I’d be sitting in my cubicle, unable to think about anything other than trading stocks. 

My passion was immutable … I couldn’t quench my thirst without taking a shot at trading once and for all.

And doing so was the best decision I ever made…

I joined Tim Sykes’ Pennystocking Silver service, then two years later signed up for his Trading Challenge … and the rest is history.

Here’s the fun part … I now see reflections of my younger self in many of my most promising students.

Take my top student, Jenny Smith, for example. She’s turned her passion for trading into a career that supports her entire family. 

Now, you’ve gotta ask yourself this critical question … do you have the passion for trading required to succeed? Do you want it more than the rest?

Trait #2: Risk Tolerance

Personal risk tolerance varies greatly between individuals.

Some people are degenerate gamblers. They see every dollar in their wallet as burning a hole in their pocket and they can’t wait to gamble it all.

On the contrary, I’m sure we all have friends that can’t stand losing money no matter what…

Some people aren’t built for financial risk. There’s nothing wrong with that, but those people shouldn’t even consider trading the stock market.

My most promising students start out with an important baseline of general risk tolerance.

In other words, they’re okay with risking money (and potentially losing it). 

You must be comfortable with the idea of taking losses. If you aren’t, you’ll never make it through the most difficult periods of being a trader.

Take it from me. Back in March, I lost $60,000 trading puts on AMC Entertainment Holdings Inc. (NYSE: AMC)…

Did the loss sting? Of course. But did I let it affect my risk tolerance? Absolutely not!

The key to nurturing your risk tolerance is to understand how much you’re willing to lose and to NEVER trade bigger than that.

Trait #3: Perseverance

As crucial as passion and risk tolerance are to the aspiring trader, there’s one final trait that’s even more important … perseverance.

The most passionate and risk-tolerant students can still end up failing if they don’t possess the ability to make it through the hard times.

Again, look at me…

My trading journey has been a challenging struggle as opposed to a glamorous ‘Cinderella story.’ It took me years of hard work to really get a grasp on my ultimate trading strategy.

(Speaking of my strategy … if you’d like to learn the ins-and-outs of my trading game plan, check out my brand-new ebook right here.)

But the difficulty I faced early on helped harden me into the unwavering trader I am today. It’s a big reason why I’ve been able to make nearly $4 million in trading profits over more than a decade. 

I wouldn’t trade my journey for an easier one. In the end, it was all worth it. 

I was disciplined and patient. But most importantly … I persevered through thick and thin. 

After so much time in the markets, I’ve realized that perseverance is the key to long-term success.

Now, I see this trait echoed in all of my most promising trading students. 

So remember, success won’t be easy and your journey may be long and challenging. But if you have the ability to persevere through the ups and downs … the sky’s the limit. 

Final Thoughts

A lot of newbie traders get hung up on their lack of technical skill. 

If you’re overwhelmed attempting to understand monetary policy, technical analysis, earnings reports, macroeconomic data, and more from day one … relax!

This technical knowledge will come with time and studying. What’s far more important is nurturing the three personality traits I laid out today.

If you’re passionate, willing to take risks, and able to persevere through anything … you just might become one of my most promising students one day.