So, you think you want to be an options trader? You likely have been stock trading for a while, have a general understanding of the market and some capital to risk. Notice we used the phrase "capital to risk" and not capital to invest. Options trading is risky, much more risky than traditional stock ownership. Options trading is about levering opportunities. But what personality traits can be leveraged to make you a successful options trader?

To be a successful options trader it helps to possess the following traits:

Membership to the Left-Brainer Club
Options traders must be able to interpret charts, identify trends and work with numbers. If you have a hard time knowing your Deltas from your Vegas or cannot understand what implied volatility is, options trading may not be for you. Other left-brain traits helpful to options traders include: punctuality, forethought and logic. Spock would have made a great options trader. Captain Kirk would have failed miserably.

Risk Management Ninja Skills
Options trading involves extreme risk. Successful options traders know how to evaluate at any given moment how much risk they are dealing with. They know how to diversify their trades to balance out overall risk, they watch their positions in regards to volatility, and they are prepared to deal with the aftermath if things don't go their way. They are cautious, watchful, patient and prepared.

The Patience of a Saint and the Discipline of a Marathoner
We have all seen this image: the stressed out stock trader screaming on the trade floor, his tie crooked, sweaty hand running through his hair, a look of anguish on his face, a bottle of Tums by his side. Forget that image. Successful options traders watch patiently, test strategies, monitor goals and don't deviate from well-thought-out plans or make decisions based on emotional triggers. They are also OK with getting out there and running on their own. They are distance runners, not sprinters.

A Keen Ability to Cut Through the Hype
Sometimes reading market news seems as unreliable as reading celebrity gossip. Successful stock traders stay abreast of market news and trends but know when they see something that is too good to be true. They don't immediately react to sensationalized claims, hearsay or one person's opinion. They read prolifically and study the market tirelessly to create their own sound investment strategies.

A Hankering for Hoarding
The old saying "Those who do not remember their history are condemned to repeat it" also applies to options trading. The best options traders keep meticulous and correct trade records, and keep records of their past failed strategies in order to hopefully not repeat them. Though it may seem like those that file and date every document, and manage detailed lists and a comprehensive calendars are over-stressing, they are not. These are excellent practices for options traders.

Options trading is risky, complicated and exciting. Bad options traders go cliff diving without knowing exactly how far down the water is, hope there are no rocks and assume they can climb their way out. We know these types; they are entertaining, spontaneous and creative. However, good options traders know exactly how far down the water is, have calculated the impact, have scouted for rocks, checked their insurance policy and routed three different ways out. We know these types too; they are smart, in control and maybe even wealthy.

At TopTenREVIEWS We Do the Research So You Don't Have To.™