I’ve had many jobs over the course of my life. I’ve been an accountant and tax attorney, I’ve bussed tables at a restaurant, delivered papers as a kid, and I even worked as a janitor at one point. The best job I’ve ever had, however, is as a trader. Trading is rewarding to both the intellect and (potentially) the pocketbook, and it gives me the opportunity to control my own destiny. Notably, a career as a successful trader is open to literally everyone regardless of their background or education… which is probably the reason the financial industry spends so much time and energy trying to convince everyone that actively managing our own investment accounts is a recipe for disaster!

Of course, while anyone can learn how to be a trader, it isn’t for everyone. There are a number of unique challenges that you face as a trader, and you need to cultivate traits that deal with those specific challenges. You need the right emotional and psychological make-up to really make it as a trader. 

One thing that is often overlooked is that trading is largely a solitary pursuit. There’s a wide array of platforms (such as social media, message boards, and chat rooms) through which traders can interact with a community of like-minded folks and share actionable ideas and strategies. But trading is more like tennis than football. You can have supporters in your box giving you pointers and cheering you on, but at the end of the day, you’re ultimately responsible for your results. If you’re the type of person who thrives in a team environment where you’re working alongside others in order to reach a common goal, then you need to make sure you can adapt to being more isolated.

Good traders also have to be excellent self-starters and have strong time-management skills. You won’t have a boss giving you direction or making sure you put the new coversheet on your TPS report

I’ve found time blocking to be extremely useful in ensuring I’m focused each day (at the right time!) on my most productive tasks. By scheduling out my day from start to finish (I use 30-minute increments), I can make sure that I don’t even have to think about what I’m supposed to be doing next. My calendar tells me what to do… and (almost as importantly) when to stop working for the day!

Another important trait that traders need to cultivate is optimism. Being an optimistic trader doesn’t mean being permanently bullish, but it does mean understanding that the market will continue to offer opportunities to make money. This becomes exceedingly important during bear markets when it feels like you’ll never make money again. I’ve often said through the years that bad markets don’t scare you out, they wear you out, and it’s that seemingly relentless nature of a bear market that can make traders throw in the proverbial towel. The reality is that downdrafts are a boon to opportunistic traders with the right mindset. Bear markets create conditions where traders can subsequently make significant money in the market. When the action is at its worst, the optimistic traders know that the potential opportunities are multiplying.

Finally, the most important trait of successful traders is persistence. You have to have the grit and determination to show up day after day and put in the hard work that’s required to excel… especially when the market gods are reminding you of who’s really in charge of the show. Hint… it’s not you! 

The reality is that you will go through periods when things aren’t going well. Trading results are inherently inconsistent, but opportunities are inevitable. The traders who stop grinding it out when things aren’t going their way will almost certainly be out of position when things begin to improve. 

Ultimately, the key point is that successful traders are self-motivated, disciplined, organized, optimistic, and persistent. While very few of us are born with those traits fully developed, the good news is that all of us can learn them. All it takes is work.