You know it already…
They need to be technically proficient. They must be analytical. They must have the patience to wait and watch the market before making any move.
However, there’s plenty more required from the stock traders if they are to be successful.
They must have various other soft traits to be ahead in the game, on their way to a sustainable portfolio.
Here are 7 underrated attributes that a stock trader needs in order to be successful:
1. Mental toughness
Many beginners do not realize this but stock trading demands immense mental toughness.
You’ve got to be mentally tough to effectively deal with losses, market FUD, and the quick-changing trends.
Feeling drained and stressed out is quite easy in this roller-coaster of a ride. In fact, today, we have a large crowd of stock traders who are burned out.
If you aren’t tough in your head, the game will take a big toll on you and you will find it difficult to make efficient trading decisions.
This is, admittedly, one of the most underrated traits – and the lack of it is a big reason why so many new stock traders eventually fail.
You need to have the discipline to take out a significant portion of your every day to invest in analyzing the market, understanding new trends and planning your next trades.
Of course, watching the market movements and waiting for the right opportunities can get boring quite quickly. This is why you need discipline; to keep up with the task and to maintain consistency every day.
The stock market is dynamic. The trends change quickly. New patterns emerge and the old ones die every other minute.
Often, in the mix of these movements, your existing trading plan and strategy may seem unsuitable and out-dated.
This is where you need to be adaptable. Meaning, your plans, and strategies must be flexible so to adapt to the newer trends and patterns.
If you aren’t flexible, if you don’t change your path per the changed market movements, you will very likely end up losing big.
4. Hunger for learning
To be successful in anything, you need to be a lifelong learner. You must consistently learn and grow and become better at your craft.
This is very true in stock trading.
If you aren’t open to learn from other stock traders, from your past experiences, and from various stock trading courses, you’re basically sabotaging your own growth. And this would eventually turn up to be fatal for your portfolio in the long run.
Smart traders don’t react to the market. They, instead, act proactively. And this is what you need to be like.
You’ve got to keep yourself ahead of the market in order to recognize newer trends early and tap on the right opportunities at the right time.
If you aren’t proactive by nature, you will always end up left behind. You will forever be following the crowd of other traders; meaning, you will fail to make better trades in unsaturated, profitable markets.
Journaling is one of the most rewarding habits for stock traders. Admittedly though, no many do this. If you can, do it. If not, the least you should do is to adopt the habit record-keeping.
When you’re tracking your own trades – and their details – you’re outlining your actions that you can revisit in the future to extract more value from them and to learn more.
Inculcate yourself to keep a record of your trades. If you have the time, maintain a detailed journal even. In the long run, this could be one of the life-changing things for you as a stock trader.
7. Less ego
Ego is a big problem for many stock traders. They lose in their trades but still don’t want to learn from that experience.
They are not open to learn from their peers and experts.
They act like a know-it-all who doesn’t want to opt for stock market training.
They don’t want to change their strategies per the new market trends because they believe the existing ones are perfect.
If you’re like one of them, you are going to have a hard time becoming a profitable stock trader.
In order to reach the top of the ladder, you’ve got to keep your ego aside and be willing to accept that you are, at times, wrong.
These are seven highly underrated attributes that a person needs to become a successful stock trader.
If you lag in any area, take this as a sign to improve yourself. You need these traits if you want to build a high net-worth, sustainable portfolio period.