A trader is a trader. Many people want to make a stable profit in the financial markets and mistakenly think that it is enough just to become a trader. In fact, this is far from the case.
Everybody was a beginner at some point of the life. Trading is no different. You must learn trading basics and advanced basics to become a professional trader. You must learn proven strategies and gain experience. It’s important to be realistic about this profession. There is no perfect method of trading that consistently produces only winning results. However, if you practice learning to discriminate accurate information from that which is incorrect or misleading, you can spend most of your time focusing on information that will make you a more efficient and profitable trader.
What qualities do professional traders possess? Let’s start with an example of a successful professional trader Jack Schwager. He is a recognized industry expert in futures and hedge funds and the author of a number of widely acclaimed financial books. He is one of the founders of Fund Seeder, a platform designed to find undiscovered trading talent worldwide and connect unknown successful traders with sources of investment capital.
One of the most efficient methods for learning to trade is learning market and trading basics. A solid understanding of the basics provides the foundation that will support your entire career. This first level of knowledge is required before more advanced trading information can be successfully implemented.
Read books on trading or reputable trading websites can provide you with all the trading basics you need at a relatively low cost or no cost. Learning is nothing without practice. Experience trading gives new traders an opportunity to learn about the various markets and the one in which they want to trade. Practice doesn’t make perfect, but in trading at least, perfect practice makes improvements. You’ll never achieve perfect results because not all trades are won, even by professional traders. And that is okay.
Traders determine if they want to trade stocks, futures, options or forex trading. Upon making this choice, they can then delve deeper into the trading basics specific to that market. The next step is to learn strategies that will produce a profit in whatever market you want to trade. Such strategies are subjective, which means the source of the information matters. Free resources may provide generic strategies that worked at one time, but no longer work.
Traders build successful strategy on the combination of intellect, character, psychology, experience.
Martin Schwartz said that exchange of strategies does not work, so if traders exchange their strategies, there is no guarantee that it will work.
And finally, the most important thing. A professional trader can manage risks. Many beginners go into trading blind and rely on luck instead of working methods. When they lose, they blame their failure on the broker or the market.
A trader has to remain reasonable in the middle of financial storm. He adapts to unexpected factors and adjusts to circumstance.
If you can develop all of the above qualities in yourself, then sooner or later you will definitely join a group of professionals. As a trader progresses and gains more experience, they will likely find ways to improve their strategies or notice other market tendencies that can be exploited if another strategy is formulated. A successful trader may also find that a strategy that once worked is no longer performing well. In this way, a trader is always learning from their experiences and trying to find better ways of performing their job.