Successful forex traders all have many of the same characteristics. These characteristics allow them to trade Forex profitably over the long-term. Do you share the habits of the world’s most successful Forex traders?
1 – As with any business, being successful requires a plan. Forex trading is no different in this respect. To trade profitably requires planning and then reviewing, possibly revising, and definitely following that plan .
2 – Successful Forex traders all have adequate capital. No one should go into any business for the long term without adequate working capital. No matter how good your trading methods are inadequate capital can take you out of the game right when things are starting to go well for you. You would dare make a cross-country driving trip using only one gallon of gas would you? Of course not! Why, because you never know what might happen out there on the road that might use more gas than you anticipated….those unexpected traffic jams or maybe a side trip or two. Being truly prepared means always having a buffer for times when things don’t go exactly as planned. One of the biggest mistakes that beginning traders make is to try to get away with the absolute minimum margin requirement for opening their trading account.
3 – Successful Forex traders have unrealistic expectations. You will not profit in Forex trading if you don’t start to trade until you find a trading method that yields 1000% per month. Don’t get caught in paralysis by analysis. It is easy to see why beginning traders have unrealistic expectations based upon the many ridiculous claims of astronomical returns being offered in today’s Forex market.
4 – Successful Forex traders have discipline. Trading discipline requires that you simply follow your methods to the letter. Many traders make the mistake of not taking a trade that their trading system requires because “it doesn’t feel right”. Second guessing a successful Forex trading system is a recipe for disaster. The fact of the matter is if you have to constantly second-guess a trading system that simply may not be a system in all.
5 – Successful Forex traders think in a big picture fashion with long-term wealth and prosperity in mind. You will have loses in all Forex trading. They are inevitable and part of doing business in Forex. You will profit as long as the sum total of your wins exceeds the sum total of your losses.
6 – Successful Forex traders do their homework. I’ve seen people jump into Forex trading after studying Forex trading for the same amount of time it takes to read a lunch menu. This is a big mistake. The Forex market eats unprepared traders alive.
7 – Successful Forex traders are not looking for the Holy Grail of Forex trading – Those who are successful in Forex trading get their by doing what works and doing it consistently. They are not constantly on the lookout for some incredible trading method that will change their lives forever.
Speak Your Mind