So many people have a go at trading, but what is it that separates those people who do it successfully from those who don’t?
There are lots of traits that are commonly found in a good trader, but these five qualities are some of the most important. Not everyone is born with them, but they can develop them, and put them to good use as a trader.
During a day you can enact thousands of trades and buy and sell literally whatever you want. However, making trades on a whim isn’t the way to sustainably make money, so you’ve got to be disciplined and stick to your strategy.
It doesn’t matter what you’re trading, you’ve got to have that discipline, and stick to your plans. For assets such as crypto, you might use crypto signals, and you do this for a reason; don’t disregard them because of a lack of discipline.
Not only does this require a person to have a good feel for certain situations, and lots of research, but it also takes a willingness to change. Just because certain tactics or ideas have served you well in the past doesn’t mean they will continue to do so in the future, so you can’t be resistant to change.
The best traders manage to perform no matter how the situation changes, and they can only do this by adapting with the times.
Those same traders who manage to perform in all kinds of climates haven’t made it to where they are without setbacks, though. Not every trade you make is going to make a profit and that’s just a fact you have to learn to deal with.
Some of the losses will hurt, but you can’t let them affect you if you’re going to be a successful trader. Learn from them – yes, but you’ve got to bounce back, and this is where resilience is needed.
Sure, you might have a mentor, or someone who helps you with your trading who you can tap for advice. If you’re going to get the most out yourself though, you’ve got to learn from everything you do.
The bad trades and the losses can be useful, but only if you learn from them. If you simply write them of as “you win some you lose some”, then you’re missing out on a valuable learning experience.
Everything you do is an opportunity to learn, and you’ve got to make the most of it.
5. A Logical Approach
It’s surprisingly easy for emotion to creep into your trading, but you need to put it to one side and continue to use logic.
When you see a stock you own taking a tumble, it can be very hard to stick to your plan, but if it’s part of your strategy, then you’ve got to stick with your logic and see it through.
You start out with a logical plan for a reason, so don’t let your emotions start to take over when it gets to crunch time.