Speculation in financial markets is not an easy business, to put it mildly. To be a success, it is not enough to be able to predict price behavior, be a competent economist or internalise huge flows of information every day.
You have to be a person of integrity, monitor your emotional state every second and act strictly according to your pre-defined strategy.
A trader is like an athlete: no matter how talented and professional you are, it’s only half the battle. You can ensure positive long-term results only if you have a strict regimen which you consistently observe seven days a week.
Only a highly self-organized person can control the accuracy and consistency of his or her actions in the market over a long period of time. The exchange is a magnetic and dangerous place, it can turn your head and make you feel like a hero, or it can destroy your self-esteem once and for all.
At the beginning, almost everyone observes the trading system due of fear, but with time speculators gain self-confidence and begin to perceive themsleves as kings of the market who can afford to slightly deviate from the rules.
Punctuality is especially important for those who work for themselves, and make investments outside his or her main job.
Traders working for hedge funds are always in plain sight and feel responsible towards their bosses and colleagues, but when they are left on their own, they break their own rules, fail to follow their schedules, they can quickly get carried away with playing and lose everything.
Presence of mind
A lot has been said and written on the importance of the presence of mind is in trading. Successful people, including financiers, are often compared to predators. After all, they also act ruthlessly; they do not hurry and wait as long as necessary. But when it’s time to attack, they do not waste time on unnecessary doubts.
Fear, greed and panic are the main causes of the biggest money losses in history. Unnecessary emotions make it difficult to think straight and eventually lead to ill-considered actions.
However, when such emotions emerge, they signal that you are doing something in the wrong way: under a systemic approach the trader becomes a cold-blooded machine, blindly following his own rules venting his emotions in other life spheres in his spare time.
Time management skills
The ability to manage one’s life competently is the main quality of a person who aims at achieving impressive results. And this is the same in exchange trading: a speculator should devote time to planning, analyzing statistics, correcting his mistakes and making transactions, of course.
On the other hand, you can’t sit at your computer 24 hours a day monitoring every chart movement as this will lead to health problems and emotional burnout. So, the truth is somewhere in between: A truly successful person can strike a balance between his work, family and hobbies. This is how he will achieve maximum performance and all-round harmonious development in life.