A TRADER is a person who BUYS and SELLS FINANCIAL ASSETS (STOCKS, CURRENCIES, CRYPTOCURRENCIES, FUTURES, etc.) with the aim of making profits in the short or medium term.
Can operate in regulated or unregulated markets, using various strategies and timeframes.
CHARACTERISTICS TO BE A SUCCESSFUL TRADER:
1-. EDUCATION and CONTINUOUS LEARNING:
Understand technical and/or fundamental analysis, risk management, and trading psychology.
2-. DISCIPLINE and PATIENCE:
Follow a trading plan, avoid impulsive decisions, and manage emotions.
3-. RISK MANAGEMENT:
Establish loss limits (stop loss), appropriate position size, and diversification to avoid risking too much on a single trade.
4-. CLEAR STRATEGY:
Have one or more proven strategies, with well-defined entry and exit criteria.
5-. SUFFICIENT AND SANITIZED CAPITAL:
Have capital that allows living through initial losses without compromising survival.
6-. RECORD and REVIEW:
Keep a trading journal to learn from mistakes and successes.
7-. LONG-term FOCUS:
Understand that sustained success often requires time, practice, and adjustment of strategies.
8-. COST ANALYSIS:
Consider commissions, slippage, and taxes; optimize operating costs.
9-. EMOTION MANAGEMENT:
Control fear and greed, avoid overtrading.
10-. ADAPTABILITY:
Markets change; know how to adjust or abandon strategies when they no longer work.