Theme: Checklist That All Traders Need to Become Successful.

Do you have what it takes to be a successful trader?

To the uninitiated, trading could seem rather easy. You sit at a computer, click buttons and make money – doesn’t sound too hard, does it? But that is definitely not the case. The truth is that trading profitably is really quite difficult. It takes time, effort, financial knowledge, technical skills and the right mindset to withstand the emotional roller coaster that comes with navigating the markets. It’s not something you can master overnight, and it’s certainly not for everyone.

In this article, we take a look at the key traits necessary to become a successful trader and emphasise the importance of trading strategically, not emotionally. Read on to learn more about what it takes to become a successful trader. This article was written in collaboration with IG, Singapore’s No. 1 CFD/FX broker¹.

Discipline

You might have heard that the most important part of trading is to have a trading plan. While that’s largely true, it is also equally important to stick to the plan! Discipline is the backbone of successful trading. A disciplined trader enters and exit trades based on their well-defined trading plan, with realistic profit targets and stop-loss levels, and avoids deviating from the plan based on short-term market fluctuations. Emotion-driven traders often fall into the trap of overtrading, revenge trading, or succumbing to FOMO (fear of missing out), which can lead to significant losses. By staying disciplined, traders can mitigate risks and maintain a consistent approach that aligns with their long-term goals.

Patience

As the saying goes, patience is a virtue – and it’s crucial for trading. Markets can be unpredictable and volatile, and it’s easy to get caught up in the desire for quick profits. But successful traders understand the importance of waiting for the right opportunities to present themselves. They patiently analyse market trends, evaluate potential risks and rewards, and only enter trades when they believe the risk to reward ratio is in their favour. Patience allows traders to avoid impulsive actions and make calculated decisions that have a higher probability of success.

Tenacity

Even the most successful traders go through patches where they lose more than they profit.  The markets can be unpredictable, and losses are an inevitable part of trading. However, tenacious traders do not let setbacks discourage them. Rather, they learn from their mistakes, adapt their strategies, and continue to pursue their goals. Tenacity allows traders to bounce back from losses and stay committed to their trading plan, even when things aren’t going their way.

Maturity

Maturity is another crucial aspect of trading successfully. Maturity means managing your emotions effectively and maintaining a rational mindset throughout the ups and downs of the market. Emotional maturity enables traders to make decisions based on logic and analysis rather than being swayed by fear, greed, or ego. It also allows them to handle losses gracefully and not let setbacks affect their overall trading performance. Mature traders understand that the market is beyond their control, and their focus remains on managing their own actions and reactions.

Adaptability

In the financial markets, the only constant is change. Successful traders possess the ability to adapt to new market conditions and adjust their strategies accordingly. This includes staying updated on relevant news, economic indicators, and technological advancements that may impact the markets. Adaptable traders aren’t rigid in their approach but are open to learning, evolving, and incorporating new insights into their decision-making process. They understand that flexibility is key to long-term success in an ever-changing trading landscape.

In summary, there’s a lot more to trading than many people realise. But if you learn to trade strategically, practice patience, develop discipline, exhibit tenacity and embrace emotional maturity, trading can be an enjoyable and potentially profitable endeavour.

While trading can seem overwhelming at first, IG has created a wealth of high-quality resources to help make it more accessible. From the ‘Analyse and learn’ pages to IG Academy and the new Master Your Trading Mind hub, there’s plenty to sink your teeth into, so why not take a look now?

You can also practise trading in a risk-free environment with a free IG demo account. Open a demo account and trade thousands of markets with virtual currency here.

¹ By total number of client relationships. Investment Trends 2022 Singapore Leverage Trading Report

Losses can exceed deposits. Refer to Risk Disclosure Statement and Risk Fact Sheet at IG.com/sg.  Issued by IG Asia Pte Ltd (Co. Reg. No. 200510021K). This advertisement has not been reviewed by the MAS.