What qualities does a perfect retail trader has?

<p id="isPasted">Two qualities sets apart a good stock trader from an average one.</p><p>Knowledge: A good stock trader has to be knowledgeable about the market and the stock that he is trading. This is what seperates mere speculation from calculated assumption of risk. He should know what makes the market tick, how an exercise like the monetary policy statement of the central bank will move the market in general, how the decisions taken in the Annual General meeting of the company is going to affect the price of the stock etc. He will strive to acquire more and more knowledge throughout his career.</p><p>Patience: Many people advocate patience as a virtue of the value or growth investors. I think that this is a virtue that is equally relevant for a stock trader. This is because the successful execution of a trading strategy is a test of your nerves. Consider that you have a long view on a particular stock. You have a target price in your mind. As you would know, the stock market does not rise or fall linearly. There might be a temporary blip and your stock’s price may suddenly dip a bit while it’s general direction has been upwards. A trader will be compelled to exit his position while still being able to book profits. However, a goo d trader who knows the market will hold his ground and wait for the target to be achieved. This sets him apart from an average trader.</p><p>There might be many other qualities that a trader possesses but I feel that the above two defines him as a “good” one.</p>