Unfortunately, becoming a good Forex trader, or market trader in general, is not as easy as it seems. The academics may feel if they study hard enough, then they will get the concepts down, and begin turning an instant profit. This is not the case! In this article, we will review what we feel are the Top 5 characteristics of our most successful students in Forex trading!
Before you can become a successful Forex trader, you must first master the art of control. Establishing a solid level of discipline is crucial in your endeavour to success in the Forex world. Don't rush into trading, until you have completed all the necessary education to know what you're doing. This will allow you to set-up a routine for analysis, then establish the criteria for a trade you are highly confident in, and finally, only take those trades!
Focus is in Forex is so key. The Master Forex traders of this world, don't just rely on luck. They focus. Focus on where price is, where it has been, where it is moving, and what all of that means. Reading forex charts, and price behavior, can be some of the most intimidating, and difficult things to be tasked with. It is crucial to be focused when completing analysis, and focused when placing a trade.
Everything from analysis, past trades, chart mark-ups, and expectations of the market, should all be logged and tracked. The Master Forex trader will have detailed notes prepared before the start of the next trading day, which will be used to help substantiate any expectations of the market, and rationale for placing or not placing trades.
Emotion kills good trades. Don't burn through your cash, stay Rational.
Emotion kills good trades, dont't burn through your cash, stay rational. Taking a trade to get "revenge" on the market after taking a loss, or being over-confident can only result in deeper losses for a trader. Stay cool, and only take a trade when your brain is telling you to do so, not when your heart is clouding your judgement.
#5 Not too Analytical.
One of the pillars of success in attacking the financial markets, is the ability to analyze technicals, and determine when price is behaving in line with your trading strategy. One of the issues here, comes from the extreme form of this - being overly analytical. If you over analyze the markets, you will begin to second guess yourself each time you are looking to place a trade. Establish a criteria system to establishing when to place a trade, and follow that system each time. Don't get trapped by your brain!