Top Qualities That Will Make You a Better Trader – Introduction
We all want to become better at what we do. As Obama recently said, better is good. In trading too, we are all in a quest to become better traders. However, the truth is, some people – despite their love for trading – will never become good traders. This is because a good trader needs to have a certain set of qualities. If you look at all successful traders in the world, you will realize that they all have these qualities.
- You should be patient
Patience is a very important quality that you must have. Without patience, you have no chance of succeeding as a trader. This is simply because thesis takes time before they are actualized. For example, you can open a trade expecting that your thesis will work out within a few hours. A few hours later, the thesis fails to play out. Therefore, you need to be patient and wait until your thesis works out if you really believe in it.
This also plays out if you are a new person with interests in trading. Most new traders start out thinking they will succeed no matter what. They don’t take time to learn how to trade. At the end, most of them end up discouraged after losing all of their money.
- You should be a risk taker
One of the most prominent qualities of all entrepreneurs is risk taking. To succeed, most of them leave their well-paying jobs to start a business they are unsure of succeeding. They sell their belongings to invest in their dreams. Some, take huge loans backed up by their houses or cars. As a trader, you need to be a risk taker too. You should be ready to take huge risks hoping that they will succeed. You should be ready to deposit funds in your account and hope that it won’t be lost. Without taking such risks, you don’t have the ability to succeed.
- You should be strategic
I have seen many successful traders. I have also seen many who are not as successful. Being strategic is a very important trait that you should have. In this, you should take decisions after considering the bigger picture. For example, if you are short crude oil, you should have reasons why you think that crude oil will drop. It is wrong to place a trade without having solid reasons. This is in fact, one of the top reasons why most new traders fall.
- You should be inquisitive
As a trader, it is very important to be inquisitive for every decision that you do. This means that you should always ask questions about different scenarios before you open a trade. The idea here is to examine different scenarios before you make decisions. For example, if you believe that the dollar will strengthen, take time to ask different questions about other issues that may lead the dollar up. Also, ask yourself different questions about the worst-case scenario for your trade.
- You should be disciplined
All successful traders must be disciplined. This is another common mistake that many people do. If you are not disciplined you will not abide to the rules of the game when things are not going your way. For example, if you have a trade open and its making losses, you might be tempted to adjust the stop loss hoping that it will reverse. Doing this will lead to huge losses. Therefore, you need to be discplined to a level that you are willing to take losses.