5 Traits That Could Make You a Good Online Trader
If you’re fresh out of university and you’re still none the wiser when it comes to a career path, this article is designed to get you thinking about whether a role in financial trading would appeal to you.
Trading the financial stock markets is by no means easy, but if you’re able to consistently profit, you can secure a very comfortable life for yourself financially, transforming your lifestyle.
Even those with degrees in economics and mathematical backgrounds can struggle to get their heads around the world of trading; there are a number of key personality traits you need in order to prevail and make online share trading your primary income source:
The ability to learn from your mistakes
Successful financial traders are those who are prepared to accept when they have been wrong, learn from the error of their ways and make the right decision in the future. Too many failed traders are scared to make mistakes, whereas even the most successful investors in the stock market will admit making mistakes will always happen – it’s learning why or how you made the mistake that is key.
An innate competitive streak
There’s no two ways about it, if you don’t have a drive or desire to be better than others, you’ll never cut it as a trader. You may well have a passion for money, but that doesn’t always correlate to a passion for trading successfully. You need to be able to immerse yourself in training and have a strict personal development plan that’s designed to meet long-term trading goals. The desire to network with others in the industry is also key to glean invaluable insight and gain a trading edge.
Comprehension of financial terminology
You need to be able to quickly get acquainted to the raft of financial terms associated with the stock exchanges. This is an industry where you need to move fast, so you need to be able to digest and understand all the data and information that’s thrown at you. From asset classes and arbitrage to volatility and volume, if you have a solid vocabulary of financial terminology you have the ability to go far in this business!
Patience and discipline
You’ll find precious few successful financial traders who don’t extoll the virtues of exercising discipline when planning and executing trades.
The ability to stick closely to a trading plan – only entering the markets when the conditions are right – is one of the best attributes to have in ensuring long-term profitability. Too often, failed traders get itchy feet and get bored, veering away from their trading plan and ultimately enter losing trades through their own impatience.
Comfortable taking and managing risks
Closely aligned with patience and a disciplined trading approach is a clear respect for risk and the uncertainty that stock markets can bring. Successful traders are comfortable accepting that every time they enter a trade there is an element of risk. However, with the right trading plan in place, it can be a well-calculated risk that doesn’t cause stress or anxiety. Managing that risk in alignment with your trading plan is equally important as the mentality itself.
Ultimately there is no right or wrong way to trade shares online. As one of the world’s greatest ever traders on the stock market, Warren Buffett, said: Rule 1: Don’t lose money. Rule 2: Remember Rule 1!