Factors determining success in trading
Many factors contribute to trading success. A wide range of specific skills and personal qualities, including psychological resilience, general market knowledge, and research prowess, vastly increase one’s chances of consistently making profits. However, many traders believe that other, less quantifiable, and more subjective components can spur financial gains even further. They regard luck and various rituals related to higher powers as crucial prerequisites of trading success.
Octa, a globally recognised financial broker since 2011, has been researching various facets of traders’ mindsets since its first steps in the financial industry. As part of this effort, the broker has recently conducted a global traders’ survey called ‘The Lucky Ones’ to learn about traders’ behaviours and attitudes regarding luck. The survey results for Malaysia shed light on the psychology and demographics of the local trading community and offer a valuable perspective on how Malaysian traders perceive their journeys in the financial markets.
The role of luck in trading
For Malaysia, the average age of respondents was 39 years, while their average experience in trading amounted to a little less than two years. From the onset, the vast majority indicated that they don’t use any lucky signs or talismans to improve their trading results. However, further questions revealed that a significant share of respondents occasionally fall back on behaviours related to luck in one way or another. For example, 27% admitted to using various rituals before or during their trading sessions to boost confidence and maintain a winning mindset. That may indicate that practical experience makes seasoned traders reliant on things that have brought them luck in the past.
Some respondents even choose material objects to root their aspirations in, using techniques such as tossing a coin, rolling a dice, and keeping lucky charms in their pockets or near their screens to help them make winning decisions. 18% said that a lucky charm or talisman helped them achieve their all-time high daily profit—a considerable share, considering the data-driven nature of the trading industry.
When asked if they consider luck a crucial factor in trading, 77% of respondents said they are much more likely to put their faith in a well-chosen strategy and well-developed skills. The remaining 23% attribute success in trading to luck—partially or entirely—with 15% pointing out that luck and skill are equally important and should go hand in hand as crucial factors of success. That shows that subjective factors still play a significant part in modern traders’ day-to-day transactions and can hardly be called the vestiges of the past or obsolete superstitions.
The survey also provided some noteworthy results regarding the days of the week Malaysian traders associate with high trading performance. Some 45% of respondents believe Wednesday and Thursday are the most favourable days for trading. This strong preference has a logical, if not unquestionable, rationale behind it, Octa expert explained. Wednesday is when the US Federal Reserve announces its interest rate decision, which tends to send ripples throughout the global financial market. In the same vein, Thursday is considered a favourable trading day as it often follows the dynamics established on Wednesday. As such, Wednesday and Thursday seem more predictable than other days of the week.
Not by luck alone: data-driven tools are here to help
Whether traders believe in luck or not, they can significantly improve their chances of success by adopting modern, data-driven tools. Taking a proactive stance in developing and implementing such solutions, Octa has recently released some new features within OctaTrader, its proprietary trading platform.
Aiming to improve its clients’ trading experience regardless of their behaviour patterns and beliefs, Octa enhanced OctaTrader by adding Space, a built-in news feed and an analytical hub designed to help traders share valuable insights and use expert knowledge to achieve better results. The broker declares that its updated solution provides a seamless, time-efficient trading experience to new and seasoned traders alike. It merges all related processes, providing easy deposits and withdrawals, quality insights from in-house experts, and technical analysis tools.
The experts at Octa believe that positive affirmations strengthen traders’ result-oriented behaviours. As such, believing in lucky charms and maintaining specific trading-related rituals can be a positive factor if you strongly associate these things with success. Given that, enhancing a beliefs-based approach with modern data-driven tools is a more solid method to achieve consistent gains. OctaTrader gives traders a consistent toolkit to empower decision-making and boost their confidence within a flexible, well-rounded, and customisable framework.
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Octa
Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services already utilised by clients from 180 countries who have opened more than 42 million trading accounts. Free educational webinars, articles, and analytical tools they provide help clients reach their investment goals.
The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.
In the APAC region, Octa received the ‘Best Forex Broker Malaysia 2022’ and the ‘Most Reliable Broker Asia 2023’ awards from Global Banking and Finance Review and International Global Forex Awards, respectively.
