What skills do you need for trading?

Question

Zippia Team · Accepted Answer

The skills needed for trading include the right mixture of technical skills, such as a strong understanding of market trends, as well as soft skills like physical and mental stamina, strong numeracy, excellent communication, and interpersonal skills.

Just about anyone can become a trader, but to be one of the master traders takes more than investment capital and a three-piece suit.

To become a successful trader requires the ability to do quality research and solid market analysis. Accomplished traders develop their skills to thoroughly research all information relevant to the securities they trade - and then, more importantly, they are able to accurately determine the likely impact of that information on a particular market.

Traders must also learn and be perfect by utilizing market information - both fundamental economic information and market information. This is why analytical skills are vital since they enable a trader to better understand, identify, and use trends (or the lack thereof) - both as applied to price action on individual charts of various time frames and in the market as a whole.

Traders must also be able to develop and perfect their own individual trading style and trading edge, such as specific combinations of technical indicators that signal high probability trades.

A significant part of being able to stay in the game is practicing good risk management and money management. When your strategies are no longer working, you need to adapt and create new ones.