In Asia, commodities trading is a big business. And while some may say it’s easy to be a trader in Asia with the number of opportunities and markets available (view page), professional traders know that it takes more than just luck to succeed.
What separates pro traders from amateurs in Asia:
An understanding of risk management
There will always be ups and downs when trading futures or forex. Professional traders know that just because they’re making money one day doesn’t mean they’ll win forever. They put risk management at the top of their priority list by only risking a small percentage of their bankroll on each trade/investment.
Experience & education
The saying “practice makes perfect” exists for a reason – years spent investing and following the markets will allow you to feel how things should work. Professional traders know that they need to constantly learn and evolve their approach to succeed. They research other strategies, attend seminars and take courses to improve their market understanding.
Ability to deal with emotions
Dealing with emotions is a big help when trading because there will always be moments when you’re feeling excited or afraid about a trade. Pro traders know how important it is not to let these emotions take over because if they do, it’ll lead to bad decision-making and potential losses. Successful traders learn coping mechanisms for dealing with fear and excitement to make good judgment calls when it comes time for buying and selling.
Discipline
Successful traders are disciplined about their decisions – there’s no chasing losses or overtrading to make back what they’ve lost. They understand that trading is about making small gains consistently while managing risk every step of the way. Professional traders know that even good trades don’t always yield immediate success. Still, patience allows them to keep drawing on their bankroll while minimizing losses when things don’t go according to plan.
Focus on what you can control
Professional traders learn to focus on what they can control rather than getting stressed out over things they have no say in, like the overall market or economic conditions. Successful traders take each day knowing that having a positive attitude will help them make better decisions.
Patience with themselves & others
Successful traders understand that trading is a marathon, not a sprint. They’re patient with themselves and others because results will come in time. They know that keeping control over their emotions is step one to achieving long-term success as traders or investors. Professional traders know how to wait for an opportunity instead of going after every fleeting market movement.
Entrepreneurial mindset
Professional traders have a “get it done” mindset – they don’t let challenges stop them from finishing the task at hand. Successful traders are willing to take risks and try different strategies until they find what works for them. Being an entrepreneur is about taking action rather than just thinking about what could be, and this is key for traders because there’s no sense in waiting around for someone else to do it.
Personal support system
Trading is a tricky business – long hours, lots of studying, and plenty of pressure. Professional traders know how important it is to have people they can talk with when things aren’t expected. They build a network of support that includes fellow professionals and friends/family members willing to listen without judgment or bias.
Patience with market cycles
Professional traders understand that markets go through cycles – some up and some down – and rather than questioning the system, they’re willing to ride out the lows. Successful traders take advantage of these dips by buying assets which will likely yield more significant gains once the market goes up again.
A plan for being wrong
Successful traders know that they can’t predict what will happen next, but they have a plan in place should their trading strategy fail them. Professional traders know that there’s no such thing as a sure-fire way of making money and consider all possible scenarios before deciding on investment or trade, which will help boost returns and overcome losses when things don’t go according to plan.