The #1 Trading Skill That Professional Stock and Options Traders Possess

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Buying breakouts, shorting pops, holding through uptrend, hammering the washout short. So many different skill sets that so many of our favorite traders attain.

Some of us believe that being able to hold for an extended period of time is a top trait in a trader. Well this as top skill that a lot of professional have, however it is not the #1 trait I am talking about.

The ability to hold through a trade to maximize profit or to allow the trade to go in your favor is exceptionally difficult because we often get scared when the stocks start going against us, anxious when the stock starts moving in our favor, or just out right bored our position isn’t moving at all.

The ability to sit through this all in order for your plan to work requires grate discipline and patience. Not just for a week or month, but for your entire trading career.

The ability to sell short is also a great advantages strategy to have. Not just because of timing, but depending on the type of stocks you are shorting, the shares might be hard to borrow and hard to locate.

This means you cannot just short when you want to. You have to have the correct presence of mine to determine if the stock will be a good stock to short today or next week, and begin to pay for borrowing the shares.

Now bigger name stocks as well as higher price stocks usually don’t have that problem because they tend to have plenty of short shares to never run out of.

However if we are strictly talking about low float, low priced stocks, then being able to reserve short shares for the correct stock to short later in the morning or day is a commendable trait.

Out of both of those examples along with much more traits that make a successful trader the success that he/she is, I have my own belief that…..

Fearlessness is the ultimate trait the professional traders need to have in order to not only be successfull in the first place, but to continue to grow as traders and evolve into better traders over time.

This fearlessness in trading can be spread out into different areas of stock trading.

Lets talk about buying and selling. How many times have you looked at a a chart setup you liked and saw the opportunity to get involved, just to hesitate when the perfect opportunity arises. You now watch as the stock moves in your favor without you.

This hesitation is usually a form of fear. Why else would you not attack the opportunity to take part in a setup that you favor over others and is proven to work over time?

Same question. Why would you not shot  a wide open layup if the opportunity was given to you? Maybe because you don’t want to mess up? Maybe there is too much people watching? Maybe your are to anxious? Maybe your afraid?

A player or trader does not give up the opportunity of a great potential trade or shot unless there is a better one they anticipate coming.

If they don’t see a better opportunity, then they are in the best position to make it happen. They are the best opportunity, and they pull the trigger without hesitation because they know that.

Same goes on the defensive side when taking losses. How many times have you or a trader you know had a set stop loss but as soon as it came time to take the loss, you moved the stop loss lower?

I’ve done it before, we’ve all done it at some point. We do this because we are afraid of the loss, even though we said this was the set amount we were willing to risk.

The professional trader isn’t afraid of letting his stop loss target hit.

He does not change his mind when the trade stops going in his favor, he does not move his stop loss. He is not afraid for the simple that before he entered the trade he truly accepted the risk.

So when the stop loss comes close to hitting, he is unbothered by the loss. He can stomach it.

He will continue to trade as if he never took the loss, and he wont allow that loss to cloud his judgement going forward.

 

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