Why Trading Profession is one of the most challenging professions

By | November 2, 2022

Hone your trade as a trader

Open a dictionary to the word “Commerce” and you will find two distinct definitions. The first is trading as the action of buying or selling goods and services, while the second defines trading as a skilled profession, usually one that requires manual skills or special training. It is not a coincidence that we in the trading industry refer to ourselves as traders.

First of all, trading is a skill-based profession. Like all other skills, business prowess is something that is acquired through training, coaching, and great dedication. There are techniques to learn, practice and master.

But simply mastering these techniques will not bring success by itself. Trading is not a profession where you can imitate the successful actions of others and expect to have the same or even partial success. In this sense, a merchant is comparable to a Professional athlete.

Trade like a professional athlete

Take a tennis player, for example. Through intense drills, scenario studies, and coaching lessons, tennis players hone their craft through hard work and skill development. They learn to throw a ball, hit a forehand, predict an opponent’s movement, etc. A good trainer will instruct them in these skills and provide information and feedback when and where it is needed.

This is the same with a large trader. A prodigious trader will study the market, dig deep and create action plan for all possible market scenarios and hone your trading style in simulations and real-time trading events. But just like a tennis player, there is a great intangible that a coach and constant study and practice cannot explain. This wild card is the self and how each individual personality translates what they learn into tangible actions on the court or in the market.

Personal approach to trading

For all the knowledge that a coach or mentor can bestow, it is ultimately up to the person receiving the information to know how to fully translate and utilize it. Simply, how do you combine technical knowledge with emotional and personal aspects of the mind? The answer to this question begins with the understanding that your personality has its own unique imprint. This uniqueness means that no matter how you view the market abstraction, someone else looking at the same thing will see something different. The differences may be minor, but they will be different nonetheless.

Seeing scenarios differently also means you’ll react differently. Therefore, whatever tools and skills he learned in his trading that led him to become a trader, he must now apply and use these things in a way that is in harmony with his unique personality and style. That is why playing with the same technique or with the same guidelines as someone else will bring different results. Also, different personalities experiment and apply their own intuitive action plans based on what and how they experience events. That is why it is essential that, in addition to everything you learn, you create a tailored action plan suitable to their specific strengths and weaknesses.

To do this, and only after you’ve learned the techniques, you need to practice as many scenarios under different conditions as possible to learn how your personality deals with all these different sequences of events. Learn and study your unique responses to stressors and unforeseen market movements.

Synergizing the experience

For a trader to be successful, all the different elements included in the setup need to come together with real time. business skills.

The first ingredient of success is to be an analyst. Look at the noisy and abstract presentation of the market and based on this, create a roadmap of exactly what you would like to do. Map out where you want to risk, where you want to avoid risk, etc.

The second component is your role as an actual trader. While it may appear to be an extension of the analyst piece, it is actually a different and separate task that requires other qualities. Only in the best and rarest of merchants do these two sides complement each other perfectly. For most traders, one skill trumps the other.

What it means to be in the trading profession

Being a trader means you have to deal with actual experience, which is different from your role as an analyst, dealing with abstract ideas of a scene. The trader experiences things that are emotional, and to deal with this right, and you need to know yourself incredibly well and know the specific effects. certain events will have on you This establishes your strengths and weaknesses, which will help you make your personal plans.

For example, the market, although not in a trend, can be misleading because the price movement is in range moves before decisions are made to break levels and continue trends. Holding positions through ups and downs can be exhausting, and you need to be strong and convinced of your analysis. You never know if it’s going to break in your favor or against you. The way you are able to hold depends on your personality. How strong can you resist the market’s tricks on you? The answer comes from knowing yourself as well as possible.

Your business personality

Another thing to keep in mind is his personality class. For example, are you an aggressive or an intuitive trader? Maybe you are analytical or maybe methodical? Each type dictates different approaches to how to execute the decisions after performing the analyses.

An aggressive trader will act fast. An intuitive trader will trust his instincts more and use fewer reasons. An analytical trader relies more on what he sees and what the market tells him, while a methodical trader creates a set of rules and tools that will indicate combinations, which in turn gives them a rule guide for action.

The closely intertwined combination of personality, skill, intuition, and emotion is what makes being a trader such a finely tuned experience. profession. The blacksmith brings his unique DNA to the arena and plays to his particular strengths and weaknesses. No two traders are the same, and only each individual trader can determine the proper ways and plans to trade to maximize his or her skill set.

The Trading Profession: Bottom Line

Trading is a skill-based profession, and it can be required through training, coaching, and great dedication.

A disciplined trader will study the market, create action plans for all possible market scenarios, and hone their trading style in real-time trading events and simulations. With the individual personality, he will translate his trading skills into tangible actions in the marketplace.

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