Five Skills Every Trader Should Possess
To become a trader is not as simple as signing up with a broker and placing buy or sell orders. One needs to possess skills critical to the trade. You can pick up these skills at a course or from the learning centre of a broker’s website or on the ground. What matters is that you turn these skills into habits.
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five skills every trader should know and possess.
1. Research Skills
Trading is as much about placing trades as it is about research. A thorough knowledge of the company whose shares you invest in, important events like the fiscal budget and the RBI’s monetary policy announcements is crucial to making money in the markets. All these require excellent research skills.
Not a word or skill one would associate with a trader and yet so necessary. The markets are like a ship on difficult waters- it goes up, it comes down, it stays down, it suddenly goes up. The markets are an unpredictable place and traders need to have a cool head. Without one, panic sets in and the results are losses.
Traders swear by their methods and strategies. They stick by it through thick and thin. However, the best of investors know adaptability is the true key to success. With the markets changing in short periods, adapting your strategy to the conditions is one of the best trading skills to learn. It is what generates good returns and profits.
4. Analytical Bent of Mind
When you trade, you are exposed to multiple streams of data. Each designed to assist you in gaining profits. However, excessive data can lead to no utility in the end if it is not analysed in the right way. From charts and graphs to numbers and calculations, traders need to develop analytical skills to efficiently analyse incoming data.