The common characteristics of successful traders

For centuries, more or less since the concept of financial speculation was born, men have been wondering what the secret to being a successful investor could be.

First of all, it must be clarified that any website promises to offer a unique recipe for investing in the financial markets and earning money, knowing that it is lying. Investing is, in fact, a complex job, not so much for the energy required by the activity but, above all, for the potentially very high number of variables that every investor must take into consideration in every choice.

We have collected for readers a number of common traits of skilled trader, let’s read together and try to grasp all the information from this list.

The mistake of seeing finance as a game

Ethereum (Pixabay)

Many traders, especially beginners, make the mistake of seeing finance as a game, a sort of world casino in which to bet money like in Las Vegas. Not surprisingly, in Italian it often happens to hear the expression “play on the stock market”, rather than “invest in the stock market”.

This is not a mere linguistic nuance, we must really pay attention to the conception that each of us has of the financial markets. Each investment should be the result of a thoughtful choice, you should be able to explain why a sum of money has been invested in a particular financial security, the expected gain and the loss you are willing to bear.

It is not possible, no matter what the audience of fake finance experts that you will regularly find on social networks say, to be good traders without having a basis in general economics. To be able to earn consistently in the world of financial investments, it is necessary to know the nature of a security, the underlying value, the valuation methods and have an idea of ​​future micro and macroeconomic scenarios.

Great advice comes from Warren Buffett, one of the best-known financial investors in the modern era. L’idea Buffett’s is simple: you should avoid buying stocks only on the basis of the belief that their price will go up, taking a sheet of paper and writing 2-3 reasons why investing in a certain stock is a good idea.


Source: RSS DiariodelWeb.it Economia by www.diariodelweb.it.

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