What is it about successful Forex traders that sets them apart from the rest? But what is it that really makes them tick? By successful I mean consistently profitable, first and foremost. But I would argue that success in anything is also measured by level of happiness and overall quality of life.
I know because I used to be the person who would search for proof on the internet. Sorry to say, the only secret is that there is no secret. Or they take a two year hiatus and are forced to start all over again.
I know because I hear the stories. This is by no means a complete list, but it does cover some of the more important and less common characteristics. No Forex trader is without losses. And doing something wrong is bad. Thinking this way will only dig the hole deeper. But just remember that even a trade that ends up as a loss can be the right decision.
How is that possible? A far too common saying is that trading losses are the cost of doing business. Instead of labeling a loss as a business cost , why not think of it as a business investment? Each loss is an investment in your trading business and ultimately your trading education. This is a much more constructive way of spending your money. It gives us some insight into the minds of other traders. Having some idea of where buy and sell orders are in the market is critical to becoming a successful Forex trader.
I see a lot of talk around the internet about the need for a trader to develop an edge and define it. How do you handle losses? What do you do when you win? These are all things that make up your trading edge. Nor do you have to master all of them to start putting the odds in your favor.
Instead, become a master of two or three factors. This might apply to other ventures in life, but Forex is the exception. This is different from studying hard. As a new trader to Forex, studying the market to include how different currency pairs move is highly recommended.
I would often come back to my trading desk multiple times on Saturday and Sunday. As soon as I stopped over-analyzing trade setups and trying to make them work, my profit curve started to rise. The exception being the charts I post on this site of course. Learn to trust your intuition and stop second guessing yourself. Think about your last trade for a moment. Or were you more focused on the number of pips and the percentage of your account at risk? This convenience has caused a huge oversite.
This is because pips and percentages carry no emotional value. So when you define your risk on a trade as a percentage, it only triggers the logical side of your brain and leaves the emotional side searching for more. Successful Forex traders know this. In other words, trading Forex to gain a certain amount of money within a specific period of time.
I would be contradicting myself if I made that statement. No trader can sustain that kind of pressure and become consistently profitable. That kind of environment will only foster destructive emotions like fear and greed. All successful Forex traders know when to walk away and take a break. Those who are truly passionate about trading Forex know how hard it can be sometimes to walk away from the market.
Walking away can be especially difficult after a trade. This is because our emotions are running wild and often get the best of us. It feels like things are finally starting to click. But walking away at this time might be exactly what you need. Taking a break after a win will allow your emotions to settle. But pride and excitement have no place in the Forex market. So the next time you have a winning trade, pat yourself on the back and then walk away. What do you do immediately following a loss?
I would immediately start going through all my charts looking for a new setup. This is a trap! The successful Forex trader knows this, and has learned how to control these emotions. Often times the process of controlling these emotions begins with walking away to take a break. This is when I do the bulk of my analysis anyway since I trade the daily time frame.
So it just makes sense to take a breather until then. But trust me when I tell you that it can have a drastic effect on your consistency and put you one step closer to becoming a successful Forex trader. They do it because it sells.
The feeling when your favorite team wins is intoxicating. Every trader uses what works best for them. But every successful trader knows that proper risk management is absolutely critical to building a trading account, while a high win rate is usually only good for building an ego.
The only way you can fail at becoming a successful Forex trader is if you give up. This sounds obvious, but it still amazes me how often I see this trait if you want to call it that left out of the list of reasons why a certain trader became successful. I once met a Forex trader who had been trading for almost 30 years. Back when you had to call in orders by telephone.
Expecting him to say proper risk management or cutting losses, he answered with four short words…. That was his only answer to the question. He later went on to say that he had been beat down more than anyone could ever believe. Even to the point where he had lost ALL of his money. Not just trading money, but every penny to his name. He was so obsessed with becoming successful that he had risked all the money he had, and lost.
Not only did he fight through it, but he went on to become a multi-millionaire. This guy was a retail trader using his own money, not a prop trader although he did have a stint as a prop trader during his trading career. However he made his millions as a retail trader. Just be sure to remember this story every time you get down on yourself.
The next time you lose a trade or even blow up a trading account, just remember that not giving up is the 1 key to becoming a successful Forex trader. I hope this article has shed some light on the lesser-known characteristics of successful Forex traders.
If you only remember one thing from this article, just remember to never give up and always remain patient. Becoming a successful Forex trader is a marathon, not a sprint. Please leave your answer in the comments section below. Please log in again. The login page will open in a new window.
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