Trading successfully requires having a thoroughly tested system with clear rules for entry and exit that gets the odds on your side over a larger number of trades. It also requires having the right state of mind to execute a trading plan consistently without being hindered by emotions and to be realistic about trading in general. So apart from a good trading system, trading psychology is important in order to make the right decisions in every situation.
Risk management is key to prevent deep drawdowns or losing your trading capital. It has rules about trade risk and risk / reward to maximise profits while minimizing losses and to ensure you live to trade another day. It is critical to identify trading risks and know how to handle them. Having a trading plan with checklists, rules and fixed routines supports all this, because the plan makes it clear what to do in each situation. Poor trading psychology, poor risk management and not having a trading plan are some of the top reasons traders fail. A sound approach to all these elements is key to becomming successful as a trader.