Pro-options trading is the act of buying and selling options contracts, such as put and call options, on equity indices, currency pairs and commodities. Unfortunately, while the global market for stocks and shares is vast, with almost $73 trillion traded each year, an individual trader can only hope to control a tiny portion of that market.
But not all traders are alike. Big retail brokers offer pro-options traders the chance to buy low-risk options contracts that protect their stock investments against adverse fluctuations in value. These can be anything from one week to several years long but always come with specific expiry dates.
The best pro options traders in Singapore often share certain personality traits. If you’re looking to become a high-performing trader, these habits may be worth emulating. Here are the top 5:
The ability to focus and think outside the box
Many people struggle with keeping their attention focused on one task for extended periods. It is only natural that they might feel overwhelmed when trading options online.
However, those who can maintain their focus will find that the market rewards them richly and gives them an edge over those who cannot keep up with all relevant information or juggle multiple tasks at once. On the other hand, those with superior thinking skills tend to derive creative solutions to complex problems that more methodical traders might not think of.
A sense of responsibility
Options trading, especially in Singapore, is becoming increasingly popular among retail investors interested in capitalizing on market trends while minimizing their investment risks. As such, they would require a high degree of trustworthiness to win them over as clients or customers.
On the other hand, online options traders who do not have this sense of responsibility will find themselves losing business very quickly without realizing it! This is because they cannot foster long-term relationships with customers who expect trades carried out by professionals to be processed reasonably fast and with diligence.
Those who cannot handle stress well while trading options online will find that they cannot perform up to their usual standards. Stress can hurt trading performance as the individual becomes too tense to react appropriately to fluctuations in the price of options. By contrast, resilient option traders can keep calm even under pressure and thus deliver good results without compromising their mental wellbeing.
Ability to read people
Professional online options traders are required to have an acute sense of price movements and stay abreast of market sentiment, which affects future price possibilities at any point in time. To do this, they need to have excellent people skills to recognize how different market participants will react when faced with different situations at various points in time.
Those who lack these interpersonal skills will find it hard to predict the general mood of the market and its participants, thus finding themselves at a disadvantage when trading options online.
Options traders must identify their strengths and weaknesses and be self-aware. This awareness allows them to understand how they behave in response to different situations, distinguishing them from other online options traders who fail to do so.
For instance, price fluctuations can cause some traders to become too tense, which results in poor decision making while causing others to feel jittery, which leads them towards rash decisions. Those aware of how they react under pressure can adjust their behaviour accordingly and avoid committing mistakes that cost money.
The above five traits are what many of today’s pro-options traders in Singapore have in common. By emulating these habits, aspiring online options traders will improve their chances of success. Beginner traders who want to buy options singapore are advised to use a reputable online broker from Saxo Bank and trade on a demo account before investing real money.