It’s not easy working as a trader. If you’re employed for a larger financial agency the environment is usually stressful and draining; if you simply manage your own money, you might work from home, but you’re still forced to focus for hours on end while risking your personal wealth.
Read on for five qualities every successful trader must have to profit in the industry.
In order to trade successfully, you must be determined to hone your craft and understand the markets to the best of your abilities. You will need drive, ambition, and steadfast focus to study techniques, practice different scenarios, and eventually trade in real time effectively.
Watching your money fluctuate by the second can be a stress-inducing experience. There will be days of considerable profit and days where losses are bigger than usual. The hope is that, if you are good at what you do, those profits will always be greater. In order to not get worked up over every little rise and fall, it helps to be an even-tempered, unreactive type of person who recognize that earnings will shift moment to moment.
Sailors often say that the first thing to know about the sea is that it’s stronger than the seaman. In much the same way, trading is bigger than the trader. A successful forex trader is humble and knows when it is time to stop. Of course, there are plenty of analytical programs and software that will tell you when to buy, sell, and cut your losses, but it takes a certain amount of instinct. Setting stop losses can help reduce risk and protect your assets – it’s a valuable component of trading and should not be discounted.
A good trader knows when to hold back – bide his time. You can’t expect to make thousands of dollars overnight. Financial experts, like the instructors at Online Trading Academy, explain that the best traders are those who recognize the value of slow and steady earnings.
Read everything. Read about culture, travel, real estate, finance. Nothing exists in a vacuum so everything relates to the rest of the world. An unexpected weather incident in Asia can wreak havoc on stock prices for a US company. That, in turn, can set off a ripple of ups and downs in the market. Be aware of what is happening in the world and have a thirst for learning. The more you know, the more informed your investments will be.
Trading is a difficult field to break into, but those who embody the above personality characteristics will have much better odds of reaping the rewards. It takes a balance of the ambitious and the patient, the smart and the humble to succeed in the tempestuous world of investing and asset management. Trading is the type of niche field that very few are suited for. If you find that your personality is made up of the five traits listed above, your chances of profiting as a trader are higher than the average money manager.
Kyle Haze is a freelance writer and digital media associate who works with firms like Online Trading Academy, the world’s most trusted name in professional trader education.