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To be a trading whiz and financial advisor, you need a lot more than the standard set of skills. Most people have a background in math, science, or even a field like engineering, which helps them track and value stocks at a quick pace.
Along with a background in a STEM-direct or adjacent field, they’ll also have incredible analytical chops. Where some professionals see a pattern or a takeaway, a trader is probably taking notes and forecasting the future. In other words, there’s a lot that goes into a successful practice in finance and, specifically, in trading.
But all this hard skill-building has a way of paying off—even if it’s not in your professional life. In fact, traders have some of the most applicable soft skills, which they’ve developed with hours of hard work. Keep reading for a breakdown of the most useful skills fostered while trading and how they pay off in imaginative ways.
Resource Management
A trader has to be able to wisely manage a variety of resources in order to value and trade well. This skill set has dozens of positive implications. One of the best ways to highlight the importance of resource management is sports betting. Worldwide, it’s common for sports fans to bet on outcomes for major matches and events, but not everyone knows how to manage their bankroll.
And when it comes to sports betting, bankroll management is extremely important. For the most part, betting takes place online today, which allows bettors to compare each line and market from different providers. Depending on their goals, they can ‘play the field’ by taking advantage of different welcome deals or diving deep into a single sportsbook for a more holistic approach.
That approach might involve reading analysis from oddsmakers, exploring their live betting markets, and joining a loyalty program for more competitive offers. But only bettors who understand how to manage their bankroll will be able to truly enjoy the betting experience.
Research Skills
A trader also needs to be able to research the market, global economic patterns, a localized context for these patterns, and other day-to-day economic factors. They can’t just research these elements but understand how they intersect and how they will affect markets. In other words, they need to juggle a lot of moving pieces and keep digging for more information.
One of the most unexpected ways that this type of skillset pans out is through gaming. Above, we covered how bankroll management extends the fun in sports betting. Here, a trader’s research skills might instead make them one of the best Halo players around.
One recent study from Brown University’s Topics in Cognitive Science found that strategy games like Halo and StarCraft 2 require gamers to seek out new skills to beat the next level or foe. Traders have a huge leg up when it comes to juggling the demands of a game while also forging toward its next level. In fact, they’re responsible for similar feats at their day job.
Independent Thinking
Along with resource management and research skills, a trader must also foster one of the most elusive skills in the business: independent thinking. This type of innovative thinking is what separates the great traders from the amateurs—and even the greats from the legends. They have to see something that others don’t and identify which risk might pay off in the long run.
Oftentimes, this translates into a highly rewarding side hustle or creative endeavor. That’s because a trader probably has a hard time turning off their mind—and that can lead to some highly creative ideas and pursuits. One of the most interesting has been the rise of day trader advice on Twitch.
Twitch is a gaming platform that lets players live stream their sessions to subscribers. And there’s a growing number of trading channels on Twitch, which offer unique takes on the industry. If you’re a trader and you’ve got tons of ideas, then consider taking them to Twitch, where you can offer your own spin on stocks.
Dear advfn.com owner, Your posts are always well-written and engaging.