– Written by Rishi Rai
Most of the people believe that stock market is a quick source of earning wealth and achieving financial security. It is a common belief that anyone can become a trader or investor today, but to be the stock market expert it takes a lot more than just investment of capital and a perfect gentlemen’s three-piece suit. The major difference between a successful stock expert and losing trader depends on acquiring essential skills.
To be a successful stock marketer one must master the skills like:
Analytical Skill – To do quality market analysis is a fundamental an essential key to the success in trading. Stock market experts develop their skills in being able to understand and analyse all information relevant to the securities and market status they trade in. Analytical skills are important because they enable a professional to understand, identify, and use trends and analysis for their benefits. As when one keeps the record and analyses a market and spots patterns and trends, it’s necessary to determine which technical trading approaches are best for the call. It is not about focusing on money to be made, but to take the right action at the right time, is necessary for developing your analytical skills.
Research Skills – Stock market experts need to create a healthy thirst for the information and a desire to find all the relevant and important data that can impact the stocks and sectors they trade in. Many professionals creates economic calendars, political movements and announcements of political leaders or central government that can impact the stock markets. Stock market experts should maintain charts, do sedulous market research and analysis for successful trading. They should identify the strongest segment and stocks of the market and utilize it to optimize profit. For a stock marketer , good research allows to take better decisions and helps in avoiding loss-making mistakes.
Don’t panic by losses – People new to stock market profession panic very easily when they suffer a loss. Thus, it is said stock market is not for the weak-hearted. It is very important that a stock trader should be prepared for all circumstances and keeps calm especially when a loss strikes. Generally when a trader suffer a loss, one tends to be panicked and take wrong decision that downsize the situation. A successful stock trading expert maintains cool and calm situations to bring things back under control.
Maintaining records – One of the most pivotal skills in stock market is maintaining and keeping record. Experts learn from their trading mistakes by recording them and not repeating it again. One of the good habits that create true professionals is that of keeping a trading journal. Keeping a trading journal and regularly reading back through it provides one of the quickest and easiest ways to identify that one is doing right or wrong.
Patience and discipline – Patience and Discipline and are two very closely related skills that every stock market professional needs in abundance. Staying in the market is important as it allows one to experience both the highs and the lows, which helps the professional to learn and make necessary adjustments in trading. An expert must be disciplined and patient in order to stick with it, especially on days when losses are happening.
– The author is CEO, Brainers Business School