The movies or the series have shown us an image of the great stockbroker who increases his fortune every time he invests. In reality it is very difficult for this to happen, but it is possible to be a good trader and earn money in the financial markets.
Investing correctly you can obtain benefits and acquire knowledge that will help you in your professional life. Being a good trader is within everyone’s reach, to achieve it you have to train and acquire or train certain skills. In this article we show you what they are.
Spending hours studying the financial market or reading news about current economics helps you be a good trader , but this is not decisive, there are emotional and psychological components that are essential to achieve success.
You probably have some of these skills, and by developing them they can increase the numbers in your account.
Table of Contents
What do I need to be a good trader?
A trader is a person who invests money in the financial markets looking for short, medium or long-term profits. There are different ways of trading and a wide variety of options to invest money .
You can win thanks to a stroke of luck, but this circumstance only occurs in very specific moments, and entrusting everything to destiny will lead you to failure.
The great operators of markets such as the Stock Market or Forex build their success by acquiring knowledge and mastering their emotions. You do not have to obsess or think that it is an impossible goal, you just have to train competitions like these:
- Certification for training
- Analysis capacity
- Determination and adaptability
- Mind control to be a good trader
- Motivation, interest and curiosity
Certification for training
To be a good trader you have to learn and training is essential. You don’t need to spend long hours studying financial products and their behavior in the market, but it is a long-distance race.
You should set aside time for several days a week to assimilate basic concepts and learn new ones. Increasing your knowledge and knowing how to apply it will always give you an advantage.
This is a skill that develops as knowledge is acquired and with practice. Any trader can access a large amount of information and data, but the ability to analyze helps him to know which ones are truly interesting for him.
A positive aspect of this competence is that the good trader can also use it to study himself.
It is convenient that you look at how you acted when you lost and when you won and draw your own conclusions, this will help you control your emotions and act cold. It also helps you to study the mistakes you made in an operation or the successes that led to a profit.
Determination and adaptability
Fear always remains. The good trader knows that the road is long and that risks are present, especially in the equity markets. Determination leads you to assume these situations and to follow your goals. In addition, it helps you assimilate success and accept failure without giving up.
A skill that complements determination and that is essential for profit is the ability to adapt. No matter how hard you study, the financial market can always surprise you.
The clearest example is that of assets that change in value due to political or social situations, and adapting to these variations is essential.
Two months ago, no one imagined that a pandemic like Covid-19 would arrive. This circumstance has radically changed the values of the shares of entities that were solid and safe. Traders who know how to adapt to moments like these can protect their money and even increase it.
Mind control to be a good trader
Controlling your emotions is essential if you want to have a long trading career and make money. When you invest in the market you have to do it coldly and never following the impulses, especially if they appear after a loss.
You should also be aware that it is a long and complicated activity and do not get depressed if you do not get the expected results.
Ambition is not positive either. Think that each euro has its value and you should not get carried away by success and invest thinking that the profits will be repeated each time you trade. In addition, risk tolerance is important, do not forget that it is always present.
Motivation, interest and curiosity
These three skills are related and acquiring and training them will help you to be a good trader. Motivation gives you the boost you need to study the market, and it is important that it is not only economical, if you enjoy operating everything, it will be easier for you.
Interest leads you to learn about other strategies, other assets and other markets, while curiosity reinforces this interest and launches you to listen to new experts or other operators.
How do I start to be a good trader?
Developing these skills will bring you closer to success, but they are useless if you don’t put them into practice.
If you are taking your first steps, it is convenient that you register in the demo version of a trading platform, in this way you will operate in the market with the same conditions as a trader, with the difference that you do not lose or win.
In your demo account a play money appears that increases or decreases according to the results of your operations, this will help you to learn, gain experience and know yourself without losing money.
Once you are ready you can make the jump to a real version. Always invest with money that you do not need for your day to day, train and apply these skills, and success will come little by little and overcoming obstacles.