Who is Perfect for International Share Trading

who is perfect for international share trading

International share trading is not everyone’s cup of tea. Yes, international share trading can be very profitable, however, there are so many factors that make this kind of trading a high cost and high risk venture.

 

Who Should do International Share Trading

So, who is perfect for international share trading? There is no ‘perfect’ answer to that question. However, there are some personality traits that highly successful international share traders have in common.

Here is a list of some of those traits:

Keeps Track of the International Market – Whatever the Time

A good international share trader keeps track of the international market. This means working through time zones. Successful traders want a pulse of the markets they trade in. This means making the effort to get news as it happens.

 

Keep Emotions Aside

When dealing with such huge sums of money, it is difficult to stay dispassionate. However, a successful international trader keeps emotions aside as much as possible and focuses on data and interpreting that data.

 

Is Flexible

While there may be different types of traders, one common thread among them all is a lack of rigidity. They know not to fall in love with a particular market view and stick to it, even when it’s failing. Traders who are stubborn about a market outlook after lose their money.

 

Is Methodical – Almost Compulsively So

This may sound contradictory to the previous point about flexibility, it actually, the two need to go hand in hand. While you need to be flexible enough to change when the markets indicate so, it is also necessary to be methodical in your approach to investments.

Studying the market trends, consumer data as well as how markets are expanding over the globe is a necessary part of trading in international shares. You would be surprised how an event in one part of the world could affect markets somewhere else.

 

Has a Great Ability to Handle Stress

Trading in shares, especially internationally, is a hugely stressful venture. The thought that one wrong decision or just a sudden down turn in the market could lead to you losing all your money can be extremely stressful. The ability to manage and handle this kind of intense stress is very necessary in such situations.

 

Is Contrarian

Warren Buffett, one of the greatest investors of all times, gives simple advice: Be fearful when others get greedy and get greedy when others are fearful. Simply put, be contrarian.

International traders know when to hedge, even if the market is booming. Smart traders know that while you need to buy shares, you also need to short to guard against a drop in market shares.

 

Learns from Losses

Every trader loses money. And international traders tend to lose more than others. This is a fact of life that you need to accept if you wish to trade in the international markets.

Successful traders learn from their losses rather than mourning them. They uses their losses to understand how to better their strategy or adjust it to reduce their risks.

 

Is Always Willing to Learn

The market is a continuously evolving organism. There are new trends, ideas and strategies constantly being evolved. And today, thanks to the advent of blockchain technology, the world is changing faster than ever.

A good international share trader also learns about all the financial tools available. Traders who are willing to expand their horizons and learn about different types of trading options, futures, stocks as well as currencies are the ones who are most successful.

An astute trader will keep up to date with all new technologies and trends in the market. Understanding how different markets work together or affect each other is key to developing skill as an international trader.

 

Remains an Individual

A successful trader does not try to emulate someone else. He or she will take the time to understand the markets, look at his or her own trading goals and aspirations and be willing to step out of his or her comfort zone when required.

 

Is Patient

Being able to trade successfully on the international platform means having a lot of patience. Wealth is not built overnight – it takes time and patience and is built up through slow and consistent trading strategies.

 

Keeps Accurate Trading Records

 Successful international traders keep accurate trading records. This not only helps them when they have to file their taxes, but it also helps them learn from their track record.

 

Trades to Live, does not Live to Trade

Trading is not the be all and end all of life. It is a way to make money which then enables you to live a fulfilling life. Successful traders also understand that work-life balance is critical to survival.

Making shares trading the crux of your existence is the biggest mistake you could make. Becoming too closely involved with anything can make you lose sight of the bigger picture. This means you could end up making mistakes and incurring losses.

Keeping a healthy distance from your work will also help you focus on it better.

Trading is a human activity. It is a test of a person’s emotional and mental endurance and is not something that everyone can do. The most successful traders are those who have managed to maintain a stable personality despite the intense pressures of stock market trading.

 

Leave a Reply

Your email address will not be published. Required fields are marked *