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COTD: More than five in 10 Singaporean elite traders embrace risk

83% believe risk has a high impact on the success of their trades.

Of the 19% highly successful Singaporean investors, around 52% consider themselves risk-takers, compared to just 10% of low performers, according to a CMC Markets report.

High performers also have a high risk tolerance and a risk-reward mindset, with 47% believing that those who take risks are often rewarded.

Moreover, 83% believe risk has a high impact on the success of their trades, whilst only 46% of overall moderate and low performers agree.

High performers are also more likely to describe themselves as confident (50%), compared to moderate (17%) and low performers (10%).

Further, they are more likely to have a spouse (86%) and are also significantly more likely to have a pet— 32 percentage points more likely to own a cat, and 24 percentage points to have a dog.

Additionally, high performers are both confident risk-takers and methodical planners, with 57% being organised and 45% calculated.

They are six percentage points more likely to maintain an emergency fund, five percentage points more likely to follow a structured trading plan, and three percentage points more likely to use hedging strategies.

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