The influence of the psychological qualities of a trader on the efficiency of transactions

Based on research, conducted in the US and Canadian markets, foreign scientists have established a statistically significant correlation between the positive psychological qualities of a trader and the success of his professional activity., the key to success in the market is the presence of the following character traits of a potential investor:

-lack of desire to subjugate the market and control it;

-the ability to feel the individual "risk barrier" - that is. limit values ​​of the magnitude of risk, which the investor can assume, and limit values ​​of capital, which he can risk without fatal consequences;

-the ability to act outside the zone of psychological comfort, ie. make deliberate and adequate decisions, even if the situation is not going well, as the investor initially assumed;

-ability to take into account the selectivity of perception and memory;

-the ability to recognize a state of stress and develop protective mechanisms against rash actions in such a state, distance yourself from personal emotions and experiences;

-the investor has adequate self-esteem;

-ability to take into account the influence of negative attitudes, inclinations and predispositions;

-the ability to avoid psychological attachment to specific financial instruments;

-the ability to give up momentary profit for the sake of a long-term perspective;
-the presence of endurance and patience;

-the ability to plan several (often opposite) options for the development of events in the stock market;

-the ability to focus on the goal and constantly act on the basis of the decision;

-skills of working with large amounts of information in order to avoid psychological overload;

-lack of psychological dependence on trading

a source: The Elements of Successful Trading (Robert J.Rottella)

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