| Every trader begins their own arduous trading career | | | | The ability of a trader to continue learning, stick and |
| by taking baby steps in learning and improving their | | | | adhere to the plan while not allowing emotions to |
| knowledge and skill in a continuous manner. They | | | | take over is an essential internal attribute. One |
| need to focus all of their energy and effort to | | | | example of the importance of continuing to learn, can |
| improve the probability of wining in every trade made | | | | be the case of some people who allow arrogance to |
| while simultaneously learning to deal with emotions. | | | | get the better of them which will become their |
| Everyone of us are unique individuals. We look at the | | | | downfall eventually since they think that learning has |
| same situation but we react and also analyse it | | | | become unimportant. If there is one thing to |
| differently. While the basic knowledge for trading, | | | | remember, methods and information will keep |
| both fundamental and technical analysis are similar for | | | | changing with time, falling behind is imminent when |
| most financial instruments, an example can be the | | | | one stops learning. |
| analysis of the potential of a certain company stock | | | | 5) Able to remain focus |
| to make money. However, the methods of trading, | | | | We occasionally hear some traders complain that |
| the trading plans,level of discipline and emotional | | | | while they are away to the washroom for just 5 |
| aspects for each individual are very different. This is | | | | minutes, a huge loss has occurred in that short time |
| why it can be difficult to make money in the market | | | | span. We even hear people complaining that they got |
| and have a trading career if the individual trader does | | | | distracted while chatting online that they entered a |
| not improve on his areas of weaknesses. | | | | trade wrongly resulting in losses. These are just |
| So what are the attributes for a successful trader? | | | | typical scenarios that had happened on the |
| There are 10 attributes that are crucial to the | | | | misfortunes of these poor traders. Are you one of |
| success of a trader. But one thing to note that even | | | | these people who cannot remain focused? |
| though you may have all of these attributes, the | | | | 6) Able to control and use emotions to your |
| probability to lose money is always present as the | | | | advantage |
| market is a place where human emotions congregate. | | | | This may sound contradicting. The ability to control |
| Just like weather and the moods of a woman, it is | | | | your emotions is essential and remains very |
| difficult to predict and impossible to say that you will | | | | important as allowing emotions to take over will |
| always win in every trade you make. This is the | | | | mean losing control of the trade. However, we do |
| most important thing to take note of when trading. | | | | hear people with intuition, womans' sixth sense or gut |
| For beginners and other amateur traders, it is always | | | | feeling. These people can use that to help them to |
| good to keep learning as trading is one of the | | | | increase the probability in their trades provided they |
| toughest careers in the world. The 10 attributes are: | | | | base it on their plan, trading system...etc. It is |
| 1) Properly capitalized with money that you can | | | | important to note that the main focus still falls back |
| afford to lose. | | | | on a system to trade. If you are one of these |
| Trading is a difficult career, if you are not properly | | | | people with blessed gifts, use them wisely to your |
| capitalized with money you can afford to lose, | | | | advantage. |
| chances of losing money is always present and high | | | | 7) Has a low tolerance for risk |
| as we will definitely make mistakes during the learning | | | | Successful traders hate risk. The trading business is |
| curve. One of the common mistakes tend to be over | | | | already a risky business due to many internal and |
| trading in a single trade. When the market moves | | | | external factors. Having a low risk appetite, lowers |
| according to the trader's prediction, he will surely be | | | | the risk probability of losing money. You should |
| happy. But again, what happens when the market | | | | practice minimizing your risk and learn to preserve |
| moves against that persons' position? | | | | capital as your top priority when trading. |
| 2) Understands the financial instrument being traded. | | | | 8) Has a risk management plan. |
| There are many different types of financial | | | | Just like your trading plan, this part forms the risk |
| instruments available for trading in the market. | | | | management of all your trades. They are your criteria |
| Understanding the instrument you trade is essential. | | | | to exit the trade immediately when it doesn't favor |
| What good are you doing yourself when you don't | | | | your predictions or forecasts of the market and is |
| know how the financial instrument you are trading | | | | resulting in losses. These criteria will assist in cutting |
| works? This is especially more important for | | | | losses and preserving capital. If the trading plan is |
| derivatives since the presence of many factors in the | | | | your navigator in darkness, this part of the plan is like |
| pricing of the instrument can result in losses even | | | | an anchor of a ship. They will stop the ship from |
| though the market moved in the direction you | | | | toppling and capsizing in a storm while also preventing |
| predicted. | | | | the ship from moving. Doesn't this sounds just like |
| 3) Has a trading plan. | | | | your stop loss, sell stop ...etc? |
| Having a plan is important. A trading plan is like your | | | | 9) Treats trading as a business. |
| strategy for entering and exiting a trade. It is like | | | | Like any other business, the way trading works is |
| your navigator in darkness. While in trading, it is your | | | | similar. Whether you make gains or losses, it is |
| entry and exit system for making and taking profits, | | | | comparable to a business during good and bad times. |
| and also your management of capital available for | | | | 10) Back testing of your trading methodology |
| trading. Without one, you are like a blind person | | | | There are many trading methods available but how |
| moving around an area full of traps and pitfalls | | | | many can withstand the test of time? Is your |
| everywhere. | | | | method tested over a substantial period of time with |
| 4) Able to practice self-discipline. | | | | a high rate of success? |