What qualities should a trader have for successful trades?Barry Copeland 23 / February / 20 Visitors: 11
The first and foremost quality is discipline. There are hundreds, thousands of instruments on any financial market and each of them moves depending on some indicators. It is important for a trader not to disperse in the pursuit of earnings, since you cannot earn all the money. It is better to analyze 2-3 tools in detail than to superficially know about everyone.
For those who notice for themselves that they do not have the proper discipline, I advise you to read the book "One Good Trade."
The second point flows smoothly from the first - this is patience. As it is customary to say in a trading community: "Cut losses immediately, and let's grow profits." However, as a rule, everything happens the other way around. Traders close a profitable deal right away, because they are afraid to miss even a few plus points, and losses increase because it is unpleasant to close a deal in minus. The second quality is already inherent in professionals who know how to calmly assess the situation and keep a profitable deal to the end.
You must be stress resistant. It should be understood that no matter how good a trading strategy is, a drawdown percentage is necessarily laid in it. Without this, it is impossible to exist in financial markets (unless you are an insider or arbitrageur). Accordingly, it is necessary to be able to calmly transfer loss-making transactions that can last either one session or a month.
Successful traders try to earn as much as possible on profitable trades and minimize losses. A trader may have 30% of successful entries into the market, but these 30% cover the remaining 70% of unprofitable ones and provide an opportunity to earn. Inexperienced speculators, on the contrary, try to guess the price movement as often as possible, although trading is not a roulette game, but working with risks, no more.
It is also important to be able to adapt. Many adherents of technical analysis believe that any combinations are repeated, which is why they trade various patterns. However, I adhere to the position that there are no two identical days in the market. Even if some figure repeated itself, a hundred other reasons influenced it, and repetition was just a coincidence. Accordingly, you need to be able to take a new approach to analysis each time and take into account those points that were not previously taken into account.
To start working in financial markets, it is important to be financially independent. If you come to the market with the goal of cutting money and paying for a mortgage, you are not at the right place. Firstly, there can be no talk of any kind of "cutting the dough." If you put adequate risks in transactions, then the maximum that can be extracted in the financial markets is 50-60 percent per annum. And then these are already overstated risks. Accordingly, putting $ 1000 on deposit in a year will be $ 1500.
Secondly, it is worth understanding that at first there is no question of any profit. It takes long training, an understanding of at least the basics. A minimum of several months is spent on this, and the less money you lose during this period, the easier it is to continue.
Another aspect is critical thinking. In some financial markets, such as cryptocurrency, it is generally accepted that the price always moves against the crowd, and the news background is adjusted in a way that is beneficial to a large player. Based on this, we can conclude that it is necessary to have critical thinking in order to be able to recognize a situation when small speculators trap themselves.