Are you done fantasizing about the exotic cars and luxurious lifestyles of the Forex gurus you admire? Are you damn sure they built their wealth from Forex? If you answer yes, are you ready to take risks, develop the right mindset to create sustainable trading strategies for yourself? Well, you have decided to learn Forex and keep enduring whatever challenges you encounter along the line. No more countless give-ups, No more procrastination as you have always said.
Remember that the primary aim of Forex Trading is to exchange your currency to foreign currencies for certain transactions and negotiations to take place and be ready to take up “earning in Forex” as a different course entirely.
There are core attributes that are expected of a focus and careful Forex Traders. It’s not always about how intelligent you are in trading. Do what is right. Depend on your prediction (not 100%), be open to changes as fast you can and make the right decision when you are analyzing and risking your money. A failed Forex Traders lack many of these attributes we will discuss in this article. If you want to make money, evaluate these habits and recheck your desire afterward.
THE HABITS OF A FOREX TRADER
- Build Curiosity and be ready to learn: A successful Forex trader shouldn’t limit himself to one plan or strategy. Ask questions about why the market is what it is at any moment and how you can be safe when the positions and charts are against you.
Be ready to learn new strategies and evaluate them. Why are they working and why aren’t others working. Follow trends and stay on top of your game because the financial market changes constantly as you have to adapt your strategies and perspective.
- Unique Trading Plan: A successful trader should develop a proven trading plan for himself. If you can evaluate trading plans and you finally select the unique trading plan that works for you, then your success is getting closer. Select a plan that helps you identify a suitable product to trade and the amount that seems reliable for risking. Know your limit and what you are capable of. Do not copy other traders’ plans but learn from them. They may not reveal every detail of their trading plans. A trading plan is created to guide your actions. It may include entry and exit level, take profit level, stop loss level, indicators and others.
- Unique Trading Strategy: Be creative enough to develop and master a particular trading strategy with strict entry and exit rules. Know what you are analyzing, why you are analyzing a certain chart, and why you should risk a certain amount of money. Be able to identify when the positions favor or against you. If your prediction about the financial market is not visible at a moment, take a break, analyze and watch. Master not just any strategy but proven strategies that have yielded results.
- Uses Stop-Loss while managing their risks: Successful traders set Stop-Loss while trading to minimize the risk and exposure. He understands that trading positions can move against his plans most times. Therefore, Stop-Loss reduces the risk and exposure; the difference between the entry and exit. Do not ponder too much about the target amount you have set to attain before a certain period. The financial market never works as predicted by traders many times. If you are lucky enough to prevent loss when you manage your risks efficiently, you are doing pretty well.
- Stay Proactive always: This may seem stressful but it’s not. This is about your success in the market so you have to always take action. Build a routine that justifies your actions, be disciplined about it.
Few proactive trading things you should do towards attaining success:
- Evaluate your trading plans daily
- Set up a daily routine to increase your effectiveness and productivity in trading.
- Evaluate trading strategies and finalize what is working and what is not.
- Analyze Charts and their patterns.
- Schedule time for learning and trading.
- Follow trading experts like Steve Ward and Nial Fuller.
- Control of emotion: Yes, we know you can’t wait to make a lot of money but beware of fear which might drive you to make decisions that are against your plans, strategies, and ethics. Fear of missing out has affected most traders; they were prompted to jump on trades without genuine validation; more like gambling. What if their action didn’t abide by their plans and in the end, they lose more than they expected? Many faced the consequences.
Greediness should also be out of it. Traders can be unfortunate to chase more trades at the same time or place a substantial amount of capital on a single trade without prior validation. Greed and Fear should be forgotten if you dream to become a successful trader. Do not let your emotions take over you.
Be critical enough to ask yourself about your strategies, plans, your risk management anytime you want to trade.
- Develop risk management: Trading is all about having standard risk management to guide your trade.
Your risk management questions could be:
- How much capital per trade?
- What’s your Stop Loss?
- What’s your Trade Profit?
- What do you pick on Charts?
To be a successful trader is not a daily job. Develop positive and critical habits you should abide by and be disciplined about it. Stick to your plan and strategies and be creative; have an open mind in any market situation.