London is one of the most popular cities in the world for stock traders. Although London is very accessible to all kinds of people, there are specific disciplines that pro traders must have mastered to become successful. The following are some key characteristics shared by many pro traders who have prospered in this city.
Creativity
As pro stock traders continually develop new trading strategies, creativity can play a considerable role when trading financial assets or commodities. Creative thought seems to flourish under pressure, so coming up with your winning trading strategy and sticking to it through its ups and downs will make you more likely to succeed as a trader. This is where those without formal education may excel over those with academic training, as many successful traders are self-taught.
Discipline
It takes an immense amount of discipline to become a pro stock trader in this industry. This is because there are huge rewards for those who can be profitable and huge risks if you lose money. The percentage of loss accounts among traders is very high, which means that many people fail at their trading goals or don’t reach them until they retire. Having the discipline to stick with your trading strategy even when things turn for worse is one of the most important characteristics of all successful traders.
Independence
Pro traders are usually working on their own without supervision from anyone else. Having good time management skills to get your work done on time and don’t miss out on any of your daily or weekly goals is crucial. This means that having the discipline not to over trade, take regular breaks from the markets, and follow a strict trading routine are all key traits for a pro trader.
Patience
Being able to wait for the opportunities you want in the markets will give you an edge over many other traders who may lose it waiting or become desperate by trying to force trades where none exist. Having patience allows you to identify when a market has reached a point where even if it doesn’t move in your favour right now, there will always be another opportunity at some point in time. Pro traders make money because they know how to wait for opportunities.
Knowledge
Pro traders are continually studying the market s, so having a solid knowledge base across all kinds of asset classes will be an important trait to have. Understanding the key drivers behind the movement of financial assets is one thing, but identifying any possible risks involved with investments, like political events or changes in government policies, will give you another advantage over other traders who may not be aware of these risks. Having high levels of knowledge about primary and secondary economic indicators and financial reports that companies publish is invaluable for anyone wanting to become an expert trader.
Analysis
Analyzing data and coming up with a trading strategy based on it is a massive part of what makes a successful stock trader. Traders will use many different types of analysis, from simple technical ones using charts and indicators to complex statistical models.
Communication
Pro traders must be able to communicate their ideas effectively to make money. In the world of finance, where hundreds of millions or billions can move hands throughout an hour, having good communication skills means you’ll have the edge over other traders who may not be as eloquent or persuasive.
Finally
Becoming a successful trader requires immense research and not just on the markets themselves. You have to know your clients, study trends in every industry imaginable, and adapt to change, which is why it’s challenging to do it as a hobby but rather as a full-time job with hours dedicated solely towards trading. Beginner traders are advised to use a reputable online broker from Saxo Bank. For more information, check it out here.
