5 Characteristics of being a (good) trader
The trading market is booming and seems to be winning more and more investors. After all, we are talking about a fast market that moves billions every day! However, being a trader is not for everyone and requires some preparation!
With that in mind, we share here five essential characteristics to be a good trader and to triumph in the trading market.
1. Strategic thinking
First of all, know that in trading, as in other investment areas, strategy is everything! You must know what you are really doing, defining a consistent and, consequently, winning strategy.
Your strategy should also define in advance how much you are willing to spend and what amount you should save. And, above all, consider how much you can lose! In trading, losses are inevitable. Therefore, it is best to be realistic in the face of this, transforming defeats into strategic steps to achieve more victories.
2. Know how to manage risks
As we mentioned earlier, losing is part of it! After all, the risk is inherent in any business, right?
Precisely because of this, a good trader has to be an expert in risk management. What we mean by this is that a good professional should be able to analyze, verify, evaluate, and, of course, monitor possible risks.
Believe me, many times the absence of a control plan, can even end up losing everything!
3. Constant information
To work as a trader, you don’t need to have a degree in Economics, Finance, or Business Management! You don’t even have to be a master of mathematics! There are many doctors, lawyers, and business people in the field who demonstrate it.
However, it is essential to be curious and stay informed about everything that is happening, whether in the sector or the world.
As we mentioned before, trading is a fast-moving, constantly changing, and non-sleeping market, operating 24 hours a day, seven days a week. Therefore, it is important to be someone who has the capacity to accompany you and, consequently, to adapt to your circumstances and constant changes!
For this reason, a good trader has to constantly study and inform himself about the sector, whether through courses, tutorials, or articles by specialists, for example.
4. Critical spirit
With so much information and strategies, it is important to be selective and to know how to choose critically what best suits each one’s trading style.
We leave you with an example here: the choice of the trading platform. If you choose, for example, to use eToro (possibly the most popular trading platform in Portugal – you can consult here the eToro review), you will see that it has numerous advantages, and you can even trade through it, cryptocurrencies, raw materials, and Forex. However, more experienced traders will lack more technical information to draw their own conclusions.
What we mean is that more than going by the opinions of others and doing what everyone does, it is essential to be critical, analyze, and, thus, choose the one that best suits you.
5. Steel nerves
It is true that you can win a lot – and quickly – in the world of trading! However, just as quickly as you win, you can also lose!
Therefore, the trader needs to be someone who knows how to control his impulses, being able to make investments and make decisions with a cool head. To win, don’t let yourself be carried away by frustration or excessive enthusiasm!