All professional financial trader possess these characteristics
Becoming a professional trader should not be a myth but a fact that can be achieved, yet many traders never achieve this feat because they do not take into consideration the 8 characteristics every professional trader should possess, they focus more on making as much money as possible from the Financial markets thereby neglecting many very important factors guiding the Skillset.
Trading in the Financial markets can be very daunting and risky and this reflects in the fact over 90% of Financial market traders lose money trading the markets. A little over 5% of traders who make actual real money fall under the category known as professional traders but not all who make money from the financial markets know how to trade.
Why do I say that?
Most traders copy and paste trades executed by professionals, but still, make cool money while pursuing other endeavors. It is not enough to be called a successful/professional trader if what you practice is just a copy and paste method of trading.
Have you asked yourself, what if the trader is wrong? what if the trader stops providing such a platform for me? Can I still be a professional/successful trader without the copy and paste method? The answers to these questions can be answered if you strive to possess the characteristics every professional Financial trader should have.
There is usually a risk warning found on every trading platform that says, “Trading Derivatives carries a high level of risk to your capital, and you should only trade with money/finance you can afford to lose.” This is to inform the financial traders of the risk involved with trading the financial markets and it is only when you are able to manage the risks involved with trading that you would become a professional trader. Professional traders take risk management to be the number strategy before any other strategy hence they stay profitable and last long enough in the financial trading.
Staying humble in every facet of life is an uncommon virtue/characteristic, especially among people that have attained some level of accomplishment in anything they do. But this characteristic is very important for anyone who wants to become a professional trader and stay long in the market. Most traders flaunt flamboyant lifestyles on social media and blog posts while in reality, they aren’t traders at-all. A professional trader believes that he/she will have some very good days trading and some bad days trading, therefore he stays humble when he has a good trading day and also controls his emotions during the bad days as well.
Trade with an edge:
To trade the market and be successful is the goal of every kind/type of trader. But what distinguishes a professional trader from other kinds of traders is the ability to trade with an edge. i.e. to trade when the probability of winning a trade is greater than the probability of losing out on a trade. and A professional financial trader follows his or her trading strategy Judiciously and also applies proper risk management.
There is a popular saying that goes like this, “The day you stop learning is the day you start dying.” Every successful/professional trader always improves on himself, and there are various ways to improve.
The ways a professional/successful financial trader improves on him/herself is by Reading financial trading articles, learning new proven strategies, listening to Financial podcasts, continuously practicing already known strategies.
Know they can be wrong:
Every trader, whether professional or Amateur, will have some Bad trades and most likely Bad trading days as well, but what distinguishes a professional trader from an amateur trader is the ability to know when they are wrong to cut their losses short. one way they do that is by the use of stop losses when trading the financial market.
Focuses on what he/she does best
Keeping a Trading Journal and following the journal judiciously is one-way professional traders stay one step ahead of other traders. A trading journal helps you focus on what works best for you, for example, what currency pairs work best for you, what trading strategy is most profitable, what time is best for your trading.
Never let ego get in their way:
“Pride goes before a downfall”
This is a very popular saying and this saying is applicable to all facets of life including the world of financial trading. Professional traders try not to get carried away by their ego because some days will not be as good as other days, instead, financial traders try to learn from every kind of trader, and this is because the Financial market is too big for one trader to have all the knowledge required by himself alone.
Know when to stay off the market:
Professional Financial traders have mastered one key, which puts them ahead of every other kind of trader, and that key is to know when exactly to stay off the market. Professional financial traders stay out of the market whenever their strategies or trading conditions are not completely met and when the market is very quiet i.e. in a very flat range.
Any kind of financial trader can become a professional financial trader if and only if he/she can endeavor to possess these eight(8) characteristics every professional trader have.