Business man with a head ache, isolated on white backgroundWhen it comes to trading, certain factors determine whether you succeed at it or not. Knowledge as well as trading experience tells traders what they need to know to excel in this very unpredictable pursuit. There are also other key elements that traders need to consider when making their trading decisions. Here are the most important ones.

Level of Risk
Risk determines just how traders are able to take certain positions and succeed. Determining the level of risk can also have an effect on how trades go. Some traders take a higher level of risk when making decisions while others are more conservative in this area. The level of risk you can manage can sometimes determine your success or failure rate as well in trading.

Relative Volatility
In the securities market, the securities traded may come with different volatility rates. It is defined as the amount of uncertainty of the underlying security with regards to the changes in its value. Traders may consider a particular security highly volatile if its price or value often fluctuates. A security may be less volatile if the is fewer changes in price at a certain period. Knowing and understanding volatility in the market also is key to helping traders take the best possible trading position.

Successful trading all depends on making the right timing. Paying attention to the signals and making the right trading move and the right moment can help increase your chances of success. Experienced traders usually have a good knowledge of market cycles that help them capitalize on certain trades at certain times.