What are the characteristics of a great trader?
It takes a lot to become a great options trader and only about 10% of the traders out there are truly successful. Whether you have been options trading for years or if you are brand new to it, you may be wondering what it takes to become one of the 10% who are making good money in the trade. There are five main characteristics of a great options trader and they are as follows.
Practice, Practice, Practice
It is said that to become great at option trading you have to practice it for around 10,000 hours which equates to 4 hours a day for 10 years. Although this might seem daunting, it won’t take this long to get really good. It is just a number to shoot for.
Education and Research
Don’t ever assume that you know enough about something. When it comes to options trading, keep researching and learning until there is simply nothing left to learn. By that time, you will most likely have put in the 10,000 hours of practice.
Have a Backup Plan
Always have a plan or a strategy to work with. Every options trader should have something to work with and if they don’t, they stand a very good chance of losing big time.
Options trading can change at any time so you need to be able to change and adapt along with the industry. Don’t be stuck in your ways or else you may end up being left behind.
Think for Yourself
Although you should always be networking with other options traders and finding out how they do things so that you can learn and adapt your style of trading, you should never listen to anyone completely. Always think for yourself. After all, it is your money and you know the best way to invest it. Be open, but never be 100% trusting.
Following these guidelines, you will be far more successful than the vast majority of those who are getting started in option trading.