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Do You Have The Potential To Be A Stock Trader?

Everybody Wants to be a Stock Trader

There's a reason for the increase in the number of people working from home as stock traders over the past couple of decades. The life of a stock trader can be wonderfully flexible. They can work from their home computer or from a laptop with a wireless Internet connection whilst sitting at their favorite cafe. There is no boss to give them grief, no time wasted in travelling to and from work, and if they decide to take a day off, they don't need to beg for it. Why wouldn't everybody want to be a stock trader?

Unfortunately, it's not an occupation that suits all individuals. To be successful there is much to learn and there are certain personal qualities that are essential. Stock day trading is not for the feint hearted or for anyone who cannot bear the thought of ever losing money. If you pursue stock day trading as a source of income, you are certainly going to lose money on some stocks. If you're successful, your losses will be outweighed by your profits! If you want to be a stock trader you'll have to accept from the beginning that you are not going to make a profit on every stock you trade. If it was that easy to make huge profits, there would be a law against it!

Are You up to being a Stock Trader?

In theory, anyone can be a stock trader. If you have access to the Internet and the funds to commence stock day trading, you can certainly do it. In practice however, if you commence without a sufficient level of knowledge you are likely to lose money. Likewise, if you do not understand the importance of having a good trading strategy in place, you will probably lose money.

Don't dismiss the idea just because you don't have any knowledge of stock day trading or the market at the moment. There are numerous books available and a number of courses on offer both over the Internet and in classrooms.

Over and above the knowledge you will need to acquire, there are certain qualities you are likely to require in order to succeed.

Qualities of a Successful Stock Trader

Three qualities you will need to have or develop are diligence, discipline and courage. Diligence is required when it comes to researching the market trends and the particular companies whose stock you are considering purchasing. Discipline will be required on a day to day basis as you will need it to stick to the trading strategies you have decided upon. Last but in no way least is courage. You will need the courage to admit to yourself when you have made a mistake or misjudged something. Your courage will also keep you going when that occurs because like every successful stock trader, you will indeed make errors from time to time and those errors are likely to cost you money. Understanding that losses will be a part of your working life can ease the disappointment at those times and give you the courage to carry on

There is one more quality that will help you to be a successful trader - confidence that you can become one. Watching stocks rise and fall in real time can be frightening when your money is riding on them. If you lack the confidence in your ability to succeed long term, then you are likely to suffer a great deal as your adrenalin rushes up and down to the tune of the market fluctuations!