If you have been geeking out in the financial markets, you surely know what options contracts are.  They are, in a nutshell, the most versatile instruments in the financial markets.  This flexibility enables you to leverage your position and boost your returns, as well as manage risks by using them for hedging purposes, and gain some profits from upside, downside, or sideways.

But in order for you become an options trader, you must possess a specific set of qualities, some of which are written below.

Great Risk Management Skills

With their flexibility comes options’ highly risky nature, making it important for you to determine how much risk you are willing to have at any given time.

You have to how much the maximum downside of a trade is, as well as your position with regards to volatility.  You also have to consider the amount of capital you are willing to risk at the trade.  In other words, you have to manage your risks in a superb fashion if you really want to trade options.

You need to be great at minimizing the risks you have to take, as well as use you capital very wisely.

Have Rock-Solid Discipline

Discipline is a must in day trading.  We daresay that you cannot become successful if you don’t have discipline.

And having discipline means doing extensive amounts of research, spotting good opportunities fast, setting up the correct trade, forming a strategy, and sticking wholeheartedly to that strategy.  If you want to be a successful options trader, you have to value research and discipline more than the profits you can possibly get.

Never jump into an options trade without doing enough research. 

Extremely Patient

Extreme patience is one of the greatest quality of an options trader along with rock-solid discipline.

When you’re a patient investor, you can willingly wait for the market to throw the best trading opportunity for you to invest, instead of attempting to catch a big win on each and every market movement that you see.

If you have this quality as an options trader, you will often see yourself idling and waiting for the right signals before you make your move, much like a predator waiting for the perfect time to attack a prey.

Always in the Loop

A successful options trader is one who always keeps himself abreast of any market and economic news that is currently happening.  This does not mean that an options trader is prone to reacting to each and every news that the market and economies dish out.

Being an in-the-loop options trader means that you can separate the unimportant news updates from the really market-moving ones.  It also means, therefore, having the ability to interpret news updates in a critical fashion, paving the way for educated and informed decisions should the option trader decides it’s time to make his move.

An option trader is therefore unmoved by insignificant news items because he keeps his eyes on the target; on the most important news of the day—the news that can make the market really move.