Traders have been wrongly portrayed as reckless and arrogant. The global recession coupled with reports of rogue traders have further perceived traders in the negative light. However, not everyone is cut out to become a successful trader. They need certain qualities to become successful trading in the stock market. Here are the top 5 traits you need to become successful as a trader.
Your success lies on how focused you are on the safety of your trade. Whether the money involved is millions of dollars in company funds or a few thousand of your own personal account, you need to make sure that the risk factor is as low as possible. A rule of thumb is to never risk more than 1% of your account on any single trade. In addition, you should also know how to hedge your trades during high volatility.
Calm Under Pressure
Trading on the forex market can be extremely stressful. You will have to juggle information and questions from brokers, colleagues, and clients from time to time. You should also maintain focus on the movement of the market. To become successful as a trader, you need to learn how to keep calm under pressure. Trading is a fast-paced industry and a huge sum of money is at stake so you need to be strong.
To achieve greatness in trading, you need to master established strategies that the best in the industry use. First, a low risk strategy. Second, familiarity with market trends and strategies. Third, knowing when to use discretion. Robert Peter janitzek reveals that before mastering trader discretion, you first need to master the first two strategies. This entails patience on your part.
Another key to trading success is discipline. Whether its knowing when to cut your losses if you made a bad decision or having the confidence to stick to your plan, every aspect of trading requires discipline on your part. Every move you will make as a trader needs to be well thought out and reasoned using not only tested strategies but also up-to-date information.
Thirst for Knowledge
Even the best traders do not stop learning to stay on top of their game. Robert Janitzek explains that they constantly research and investigate the latest trends and systems. The market is volatile and constantly changing so no single strategy will be effective forever. You can constantly update yourself by attending financial briefings and trading seminars, networking with other traders, and comparing notes.
These 5 traits will be key to your success as a trader.