5 Essential Traits Every Trader Needs
We are firm believers that skillful traders aren’t born, they’re trained — which is why we place emphasis on providing a wide range of free educational resources to start your trading journey off on the right foot.
However, while learning how to navigate your platform and becoming familiar with different analytical tools is incredibly important, there are several other traits you’ll need to work hard to develop in order to potentially become a successful trader.
This is an important one! The financial markets provide an overwhelming amount of choice. With thousands of different financial instruments to opt for and 24 hours a day to trade them, it can be easy to invest in more than you should, putting your capital at risk. Experienced traders typically take a more disciplined approach and focus on a more limited group, such as three or four trading instruments. This gives you more time to be on the alert for trading signals, instead of getting carried away and adjusting a dozen trades at random.
Ever heard the saying patience is a virtue? In trading, it’s more than that – it’s a must! The market behaves differently every day, with no two trading days alike. This means that sometimes you’ll have to wait patiently until the conditions are right to take action, which prevents you from opening or closing a trade too soon in frustration.
The ability to stay calm under pressure is another essential skill you’ll need. Whether the particular cause is an economic or political event, the markets can react with sudden volatility. In order to achieve the best possible result, you’ll need to battle panic and the fear of missing out to protect your investment — let alone potentially profit from it.
In the ever-changing financial markets, traders need to develop a highly resilient state of mind, to take on challenges and make use of them as valuable learning experiences. Resilience enables traders to perceive losses or setbacks as a vital part of the trading journey and build a strong mental outlook that is driven by problem-solving.
Although a tried and tested trading strategy is an important part of your toolkit, you’ll need to remain open to adapting it over time. A technique that worked for you 3 months ago won’t necessarily continue to present the same results. Even a veteran trader will continue to explore and test out new strategies, knowing full well that the markets are constantly on the move.