SOFT SKILLS: What It Takes To Become A Professional Stocks Trader

The things that separate the amateur stocks trader from the professional stocks trader are the same things that separate the boys from the men. And no, I’m not being sexist there. Everyone, and I mean everyone is indeed capable of making the jump to becoming a successful professional stocks trader. However, what many amateur stocks traders lack is often NOT knowledge, but important SOFT SKILLS. Now you may be wondering: what do I mean by soft skills?

Firstly, I would like the clear up the distinction between hard and soft skills. Hard skills are those traits that place an emphasis on knowing the technical aspects of stocks trading. For example, what a put option is, what a future is, what this index means etc. On the other hand, soft skills are those traits that place an emphasis on the mentality of the trader especially how they react to changes in the price of stocks.

There are 3 types of soft skills that I find to be the most important and which you can acquire in order to graduate from being an amateur stocks trader to a professional stocks trader.

1. ***You’re in it for the long term*** : professional stocks traders are successful because they have a long term vision. They are never in it for a short term gain. Why? Because short term gains are generally small and sometimes non-existent. But if they’re there for a long period, let’s say 5 years, then they can realistically expect a healthy and bigger return due to the longer time period. So the message is that any success in stock trading can only be guaranteed if you invest for the long term. Short term gains are only for amateur stocks traders!

2. ***Expect to make losses*** : this soft skill is related to the first skill of being in it for the long term. Professional stocks traders always expect to make losses in the short term in order for a greater reward in the long term. It’s easy to get turned off by the prospect of making losses but the truth of the matter is that if all that you expect are gains, then you will be disappointed and will get out of stocks trading before you know it. Short term losses are all part of the process of making a gain in the long term. Therefore, it’s important to not be discouraged by the prospect of losses in order to ultimately be successful as a professional stocks trader.

3. ***Be decisive!*** : Napoleon Hill says that successful people are those that makes decisions quickly and change them slowly. This is also a trait of successful professional stocks traders. Unfortunately, most stocks traders are those who make decisions slowly and change them quickly. And in a volatile stockmarket, making decisions quickly becomes even more important. Changes in the stockmarket have to be reacted to quickly but they must be done in a decisive manner, because sticking to your decisions is one of the traits of a successful professional stocks trader.

Those are probably the 3 most important soft skills that professional stocks traders employ than amateur ones do not. However, there are courses on the Internet that teach you these soft skills and others in much greater depth. It’s all about finding the best course and program for you. In particular, there is one great course called Masterful Trading that we offer for FREE on our website and which can be immediately accessed by anyone. In addition, we have other great articles on the latest techniques and strategies for successful stock trading.