Essential Skills to be a Successful Trader

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Anyone can be a trader today, but becoming a successful one takes a lot more than a three-piece suit and some investment capital. You shouldn’t forget that there is a sea of people ready to join the ranks of successful traders and bring home the money that goes along with it. But, only a handful will ever manage to achieve this goal. Sure, you have to be well-informed, well-educated and intelligent, but this doesn’t guarantee success either. There are some essential skills that they have to have and Laura Williams has outlined them below for your ease:

  • Research and analysis

The ability to conduct thorough and quality research, along with solid and accurate market analysis is considered fundamental to trading success. As per Laura Williams, CEO of Proloxy online trading, successful traders develop their skills in thoroughly researching the information related to their instrument and then accurately predicting the impact of that information on a specific market. They utilize market information, which includes economic information, along with trading and price action, for adapting and approaching the market in the best possible way. 

  • Adapting market analysis to market conditions

Over time, a successful trader will develop trading techniques and strategies they use repeatedly. According to Laura Williams, every trader develops their personal toolkit of maneuvers, methods, trading tactics and strategies and it is good to have an individual trading style and edge. But, along with having tried and tested tricks, you need to be able to adapt them to changing market conditions. You have to continually monitor a market to see if something new is happening and whether you need to adapt your trading strategy or not.

  • Staying in the game

No matter what industry you may be in, everyone is going to experience some highs and lows at some point. When you are trading full-time, you will make significant gains at some point, and significant losses at another. Laura Williams states that one of the vital skills every trader must possess is to stick with it and stay in the game. Of course, when the outcome is good, you are likely to continue and may want to abandon when things go bad. A successful trader understands that neither extremes last for very long, which means you have to stick it out in order to profit and grow.

  • Discipline and patience 

Two closely related skills that every successful trader has to have are discipline and patience. As mentioned above, you have to stick to the market during its highs and lows and to accomplish this, you need to be disciplined and patient. Laura Williams says that this becomes even more important on days when profit is almost non-existent. Just because there aren’t any genuine opportunities available right now doesn’t mean there won’t be any in the future. A successful trader will take all of this in stride because they know that there will be new trading opportunities and that your patience will eventually be rewarded. 

  • Record keeping 

The best way to distinguish between a successful and unsuccessful one is that the former will make it a priority to learn from their mistakes, while the latter doesn’t. Laura Williams suggests that maintaining a trading journal is one of the critical habits that can actually create winning traders. This journal should be used for maintaining a record of every trade as it occurs. This means you should note down your entry and exit points, along with your reason for buying or selling. Likewise, you should also mention your take-profit and stop-loss levels, the condition of the market after placing the order, your reaction to the market movement and the outcome of the trade. 

Not only should you keep a trading journal, but Laura Williams recommends that you read through it regularly because this will help you identify what you are doing right and where you are going wrong, so adjustments can be made and you can benefit. For more trading tips and guides check out this site.

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