So you want to be a professional trader? Here are some aspects of the job that you might not have thought of.
1. Have a dedicated working environment and structured work hours.
Create a space for your trading that is solely devoted to that and make sure it is suitable for your needs Do you want CNBC or other channels on a television? What newspapers, magazines and websites will be perused each day? And so on...
Next, devote a set amount of time to trading every day. I you have got your target profit, just shut the terminal and stop trading.
There are lot many members on the blog who follow this policy.
2. Have regular performance reviews and keep detailed records.
Trading on a professional basis is a very competitive, bottom line business. Think of it as being a professional athlete. When companies are "giving" you large amounts of capital to trade with, they want a good return on their investment.
Evaluate your own trading performance with at regular intervals. If you aren't making enough profits over a period of time, stop trading and re-evaluate. Test new methods and concepts in paper trades.
3. Find a profitable niche.
This is an obvious, but difficult, concept. Most traders and firms will specialize in one area of the markets where they find a significant "edge", and attempt to milk that area as long as possible. E.g there are some traders who trade only in 1 commodity like gold, silver, crude etc
4. Develop a network of contacts and continually upgrade your education.
Most, if not all, traders are trained in a particular method by a firm, their backers, or other experienced traders. They then implement what they've learned and add to it over time as they find success.
Additionally, traders develop contacts and friendships over time that allows them to find out what is the "hot" market or area, so they can move on if a certain trading niche becomes tapped out.
Similarly, as an individual you can develop contacts over the internet and other ways with like-minded individuals and also develop your education in a variety of manners. This is how you can find that latest, greatest technical analysis indicator or technique that is killing the current market.
5. Have the proper mindset.
Trading is not for everyone. There certainly is a high burnout factor among professional traders due to the stress involved. Think of the markets as various shark tanks, with a certain number of sharks fighting for those scraps of meat.
Some of the work personality traits that will help you succeed over the long run include:
Having a thick skin, being able to remove emotions, ability to think clearly in the moment when all hell is breaking loose, attention to detail, pattern recognition, analytical mind, aversion to gambling for gambling's sake, creative and innovative thinking.
These can be developed through experience, although some certainly have these more "ingrained" in themselves from the beginning. Having a full life outside of your trading is also important - the ability to "switch off" and not take your trading results home with you each day will lead to a longer and happier trading career.
N.B : This article is taken from the net and been modified as for our members for better understanding.
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