Every person who begins trading adventure dreams about success. It is not a secret that to be successful you have to get knowledge about the markets, develop some certain skills and practice a lot. But is there a particular age that brings forth success?
History shows that both, young and older traders can thrive. It is more important to have an open mind and readiness to learn new things. Motivation and discipline count as well. But what about this age?
The legal age for investing and trading
You may be very motivated, inspired and disciplined but you must obey the state laws. The age restrictions vary in different countries. For example, in the United Kingdom, you can start trading when you are 18 years old. But check out regulations for your country as in some trading is not allowed for people younger than 21.
Reading the rules beforehand will save you problems in the future. But be careful. Do not trust the broker who offers generous terms and conditions for its clients of 17 years or less. It is probably a scam.
Young and old traders
As I said in the beginning, there is no perfect age for a trader. Both, younger and older have some advantages and disadvantages. Moreover, it is kind of individual thing how fast you learn and recover from a failure. Because you will make mistakes no matter the age. What you need to do is to sharpen skills that are useful in trading like for example being disciplined.
Some benefits that come with a young age
I include in the group of younger traders people between 18 and 35 years of age. What advantages are associated with being young?
- A fresh perspective. Young people tend to have a fresh outlook not only on money but on life in general. They live more in here and now then worry about the future. They are flexible.
- High level of energy. The level of your energy is an individual feature, nevertheless, younger men have generally more energy than older. And it is important to have it because the market never sleeps. It is sometimes beneficial to trade at some odd hours or stay up all night. Younger people are more ready to do that.
- Having an open mind. The ability to learn is very important in the financial world. People with an open mind absorb new information faster and they use this knowledge faster as well. They are more open to technological innovations.
Benefits that come with an older age
Here, I include traders that are over 35 years old. Maybe they have a bit less energy and flexibility but there are other advantages of being an older trader. Let’s see what they are.
- Discipline development. I have already mentioned that discipline is essential in trading. Young people often do not possess this skill. They are impatient and they demand immediate effects. Older traders are more likely to keep a cool head even when the situation in the market develops in the wrong direction.
- Trading safely. Elderly people are usually more considerate. They make research, examine the best entry point for the trading position and they place a stop loss correctly. They think through their movements instead of making a hasty decision.
- Bigger experience. Experience is something you gain with time so it is quite normal that older people can boast of more experience. They were trading for some time already and they had time to develop strategies and test them in real markets. Plus, they had to deal with losing and this is also an important experience.
You can be young or you can be old and you can be still successful in trading. As you have seen, there are some advantages and disadvantages connected to age. However, it is possible to work on certain skills that are necessary in order to profit from trading.
First of all, you must get to know the market. Understand the rules of the financial world. Then, you have to try different approaches and find what works best for you. Once you discover this, you should build discipline and stick to the plan you have created. And last but not least, you should control your emotions and have patience even in unfavourable conditions in the market.
So, is your age an important factor for being successful in trading? It is important to realise what are the pros and cons of being young or being older and use them to your advantage. It is important to know yourself and work on important skills you lack. But both young and old can be successful in trading and you should not put too much emphasis on age. Focus on your individual skills and improving your trading performance.