If you fancy life as a stock trader and relish the thought of mingling at the world’s most significant stock exchanges, you ought to know whether you’d have the aptitude for such an ambitious career. On the face of it, the life of a trader may seem exciting and somewhat glamorous, however, only few of us would have what it takes.
Would you have the nerve to recover from making enormous losses and go on to make major gains within minutes? Would you be able to keep detached and ride all the waves of success and failure on a daily or even hourly basis?
Let’s take a look at some of the strengths the best traders possess:
Incredible Work Ethic: Successful traders work incredibly hard, often long hours, continually staying up-to-date with the latest trends in markets all around the world. Non-stop information gathering, consulting with clients, and buying and selling don’t leave much time for rest and relaxation. Many traders rise early and work late into the evening to observe activities on markets worldwide. Long work days are certainly part of everyday life.
Brilliant and Quick Mind: Traders need to analyze changing market conditions and make quick, intelligent decisions. There’s often little time for in-depth study, emphasizing the need for traders to possess exceptional skills in figuring out trends and making smart choices within minutes. Developing wisdom and intellect (Perspicacity) – Secret to better choices tends to be necessary. Being knowledgeable and having the confidence to navigate the volatile market landscape are key elements in this challenging environment.
Ability to Remain Detached: Traders need to display cool and calm even when disaster strikes. Complete detachment is essential when making trading decisions. The best traders adopt an attitude of viewing figures as data rather than actual monetary units.
Foresight: The ability to discern emerging trends also goes a long way toward achieving success. The most savvy traders spot chances for growth and profits far in advance of most traders.
Ability to Perform Under Pressure: When large amounts of cash are involved, the pressure can rise exponentially. Unless you possess the ability to cope with stress and perform under the most difficult of circumstances, you are not going to succeed.
Intelligent Courage: Traders are often required to take courageous decisions at precisely the right moment without losing sight of the complexity of the current status quo.
Independent Thinking: Good traders are not sheep following the herd. They think independently, make their own assessments and often make contrasting decisions to what most would advise.
Confident Approach: You need to methodically analyze the market, adopt a strategy and follow its implementation through with confidence.
Flexible Thinking: By the same token, trends are continually fluctuating and traders need to be flexible in their thinking and change their strategy if changing circumstances demand such action.
Humility: Knowing when to quit and cut your losses has a lot to do with humility and bravado may not always get you out of a pickle. Good traders have the humility to recognize when they have made bad choices and take corrective action accordingly. Keeping your feet firmly on the ground at all times is certainly also highly advisable.
Have You Got What it Takes?
You can see, being a successful trader is quite difficult and life on the stock exchange is certainly not for the faint-hearted. Unless you are extremely smart and possess nerves of steel, you will simply crumble and fall.
Interestingly, the stock exchanges around the world feature very few women even though research has indicated that women often make greater gains and smarter stock choices.
If you are considering life on the stock exchange, I would advise you to have a chat with an experienced trader and find out exactly what this particular career actually entails.