The ideal trader personality style consists of a combination of experience, skill, knowledge, discipline, and intuition. The problem with ideals, however, is that they sometimes exist only in our imagination, with few actual candidates who fit the bill. Consider, for example, the traits of discipline and intuition.
The correct mindset in trading is one that is dedicated, focused, disciplined, confident, has no ego, has no fear of losing, and has detachment to money. For those not into trading, this might sound a little weird. Most traders focus on developing strategies in order to make money.
Successful day traders need to be self-motivated, disciplined, levelheaded and financially independent.
A good trader always analyzes their closed trades to find any lessons on how they can improve. A good trader is patient and knows that there are periods when they don't need to trade. A good trader never widens a stop loss. A good trader never cancels a stop loss.
Day Traders by Age
America's day traders are young, with an average age of 31 years, according to Robinhood.
For many traders, it wasn't their genius that led to their success. You do not need to be smarter than average, but you do need to be careful and patient as a trader. Experience and knowledge will almost always beat out 'smarts' when it comes to trading.
Trading is stressful
In fact, according to Business Insider it is the second most stressful job on Wall Street, right after investment banking. And no wonder: if you are a trader, you need to make a lot of decisions and you need to make them fast. You'd also better be right as bad ones will cost you a lot.
Unfortunately, many traders jump into the markets without doing their homework or seeking the necessary education and training. This can lead to costly mistakes, missed opportunities, and a general lack of profitable trading.
The most common reason for failure in trading is the lack of discipline. Most traders trade without a proper strategic approach to the market. Successful trading depends on three practices. First, investors need a guidebook/mentor/course to help or guide them in daily trading.
Lack of knowledge
This single biggest reason why most traders fail to make money when trading the stock market is due to a lack of knowledge. We can also put poor education into this arena because while many seek to educate themselves, they look in all the wrong places and, therefore, end up gaining a poor education.
Sole trading and self-employment can be a very lonely place.
The best personality type for trading might be hard to determine, but as a general rule, we believe introverts are more likely to succeed in trading than extroverts. Introverts have more and better traits that fit into what we consider the main factors for success.
So whether you want to become a better trader or have other dreams and passions, start today. It definitely is not too late and even if it takes a few years, you will be happy later about your decision today. Time will pass anyway so make it worthwhile and approach your life with a little more foresight.
Traders are not born with the ability to read charts or keep their emotions at bay. These are skills that you can learn yourself, through study, discipline and practice. These are not skills that any trader was born with though. They are skills that are acquired through study, discipline and practice.
The answer is that trading is a combination of skill and luck. While it's possible to be successful without any sort of skill, it's extremely difficult and unlikely. It's much more likely that a trader needs a combination of both skill and luck to be successful.
Knows that there will always be future opportunities. Adaptable: Adjusts to changing circumstances and sudden unexpected events. Recognizes that a trader must operate with a set of rules, but that changes in market conditions may require a change in the rules. Responsible: Doesn't blame others for own shortcomings.
There is a link between introversion and creativity. If you look at some of the world's preeminent inventors, writers, and entrepreneurs, most of them are introverts. That's because introverts enjoy expressing themselves creatively through their work.
Key Takeaways
Trading is often viewed as a high barrier-to-entry profession, but as long as you have both ambition and patience, you can trade for a living (even with little to no money). Trading can become a full-time career opportunity, a part-time opportunity, or just a way to generate supplemental income.
Introverts are loyal and devoted friends.
People are attracted to loyal and devoted people. While introverts may not always realize it, this is a trait most people find attractive in them. Their loyalty isn't just attractive to the recipients of that devotion, but to anyone who observes them.
A day in the life of a trader involves buying and selling securities like stocks, shares, digital currencies, commodities and bonds. Some traders work in an office environment with other traders and financial specialists for banks, investment businesses and exchanges.
Bad Traders Do Not Admit They Are Wrong
Regardless of the underlying reason, if the trader is unable to admit that a position is not working and proactively rectify the situation, then he has stopped managing risk and has become a passive spectator, riding the exposure wherever it may go.
While there is no guarantee that you will make money or be able to predict your average rate of return over any period, there are strategies that you can master to help you lock in gains while minimizing losses. It takes discipline, capital, patience, training, and risk management to be a successful day trader.
#1 Trading based on emotions
There is nothing more dangerous to your bottom line than making erratic decisions based on fear, disappointment, rage, excessive optimism, or greed. The best way to maintain your psychology under control is to follow your trading plan.
Not knowing the proper risk reward is the reason why most of the traders tend to lose money in stock market as a beginner. Risk Reward Ratio is calculated by dividing you how much you are willing to lose or square off your trade to the your desired profit.