If you want to be a successful trader you better be highly intelligent and have an inspiring work ethic. You also need to have a certain personality – strong, fearless but also be very humble. “Cocky, ego driven traders disappeared when the DotCom bubble blew up over a decade ago, said Joe Ross a partner Communications & Research, Inc. (C&R).
Here’s the traits you’ll need to become a professional trader.
An Early Riser
It’s now a global market, traders often wake up before 5 a.m. to get a snapshot of the opening of the Western Europe markets and close of the Asian markets.
Although it’s almost impossible to do, a good trader removes as much emotion from the process as possible.
You have to remind yourself It’s just data and money. Somedays your stocks will be taking the stairs up. On other days they’ll be racing down the elevator.
There are different types of traders, but a common characteristic is a cool head that knows not to fall in love with market conditions or to a stock. A good trader questions his motivations and knows when to back away from the coffee.
At C&R we have two people working our investments. One guy scans the news and combs over our firm’s paid research services. The other guy executes trades on that information.
Ability to Handle Stress
C&R is trading a small seven figure investment portfolio. That’s a small amount in compared to most professional traders. But, losing any amount of money can add a dose of fear to your decision making. It’s also stressful to research your butt off only to find your thesis is wrong and then watching the market storm off in the opposite direction.
Good traders have outlets, golf, working out and yogo. Anything, that let’s them find zen when off the playing field of the stock market.
This article was based on: Personality Traits of a Trader