Trading stocks is a form of art. It is a cutting-edge profession that calls for experience and skills. It is rightly said that people in their professions must mature like a fine wine, stock trading is no different! Though, beginners and amateurs in this field are bound to make mistakes. Learning from mistakes, especially those that involve money, can be an underrated or even a ‘taboo’ proposition for many people. But truthfully, there is no shortcut in this line of profession. It is the sweet mix of attitude, strategy and mindset that turn the tables for learning traders.
Here is a curated list of traits that you must develop to be a highly efficient trader.
Trading Related Qualities
These are a person’s traits and qualities that directly affect the outcome of trading. This is because these traits are either linked to a new trader’s decision making ability, or the attitude required for success.
Money is one which we are tied to very strongly. Losing a penny hurts us more than the happiness that comes with gaining two. Thus, emotional stability is the foremost quality of a seasoned trader. Trading is a risk-based profession. Even if you lay down all your strategies with the right indicators, right market time and highly probable predictions, you might still lose. The key here is to accept losing as a part of this profession, move on, and not take any biased or emotionally charged decision for future trades.
It is good to boast and feel good about yourself with a few big wins in the financial market, but your ego must never walk into the stock trading platform with you. Ego can damage two things; attitude of constant learning and openness to new ideas and methods. You can be good but you don’t know it all! Be open to suggestions, accepting your wrong trade judgements and keep learning.
If you’ll closely analyze the patterns of successful traders, you’ll notice that they possess a huge reserve of patience. They don’t impulsively enter into a trade and hope to make immediate profits. They sit back, analyze the market, apply their learning, and then at the right trade signal make a call. Impulsive decision making is the last habit you will want to be a successful stock trader.
One thing that will determine your precision to invest in stock and subsequently the increased probability of success is the ability to understand, digest and implement processes. These are nothing but small steps in the trading system meant to achieve a profit-goal. If you are a person who is able to follow systems, then obviously the first step for you would be to get Stock Market Training. There are legitimate academies that have excellent Stock Market Courses and make some fine traders. Do not fall for an overpromising training course. Go with the one that is realistic and logical.
What follows after is your ability to stick to the learned strategies. Stick to the trading system you’ve been taught, cultivate expertise, and jump into trading markets with full confidence. In any case, never deviate from your trading strategies to minimize risk, exit trade, or call for a certain decision.
Commitment & Self-Discipline
Other two crucial factors in our trading success bucket list. Commitment plays an important part of trading attitude. Before you fully commit to stock trading, know your intentions of doing so. If it is ‘get rich quick,’ then stock trading is not for you. If it is attaining financial goals over a course of time, you are rightly placed in the boot-camp.
Once you’ve committed to your stock trading goal, reaching them will demand Self-discipline. Self-discipline is not only confined to your ‘Trading time’ but to your daily life. You must be punctual, in good health with a positive mindset and spend adequate time with your family. The idea here is to attain the balance in life, which in turn will favor your performance in Stock trading.
If you visualize yourself to be in the league of elite stock traders, your journey starts right now. Attain the right technical skills & soft skills that align with your trading schedule. Follow the already successful traders in the field (Warren Buffet, Timothy Sykes, etc.). Your job will be to distill the right information & knowledge that works for you. Begin with an impactful stock trading course and persevere through the journey.