FOREX trading, although very profitable, can be a very hard industry for finding success. With millions of investors exchanging assets on a daily basis, and more coming in every day, the opportunities are everywhere. Nevertheless, as we mentioned, FOREX can be very challenging, specially for someone with little experience in finances; that is, unless you have some specific sets of skills in your portfolio.
Being a good FOREX trader is something that requires effort, dedication, knowledge, and discipline for you to make it. With that being said, here are some of the features you will find in every successful trader. Every good FOREX trader knows that the market can’t be taken lightly. Trading careers are very demanding and frantic which means that you must behave accordingly. Being responsible in FOREX means making sure you develop all the features needed to succeed. Having schedules and routines won’t take you too far if you can’t follow them to the letter. Additionally, the ability to sit down and dedicate a whole day just to enhance what you know about the market and read the news is also necessary. Don’t fall for the idea that being responsible only means being on-time in your tasks; responsibility is a mindset that will help you acquire everything that makes a good FOREX trader.
Holding hands with responsibility is, clearly, discipline. And not only discipline, but the self-applicated kind. It is necessary for you to understand that, in FOREX, you’re your only boss. Not having someone watching your steps and correcting you when you do something wrong can quickly turn you into a sloppy worker. As such, expert traders have learned that you must be able to convince yourself of doing what’s necessary. Even if you feel depressed or defeated, your success will often depend on your ability to force yourself to work. FOREX has a lot of characteristics that can take someone to the limit and convince them that “it’s not worth it anymore”. It is up to you to open your eyes and stick to your strategies even when the tides are against you.
- A Hunger For Knowledge.
FOREX trading is an industry with many terms that must be understood before any gain becomes possible. As we mentioned earlier, you must be able to stop whatever you’re doing from time to time and dedicate that small window to learning. What is volatility? What is leverage? Are they good? How can they affect my profits? And, what in the Lord’s name is a pip?! If you don’t have an answer for those questions, then I’m afraid you will never see any significant income, not even a chance. As such, any good trader knows when they need to trade and when they need to read. Both are fundamental for you. You may think of them as a car wheel; you may have four (or even more), but lose one and the others can’t make up. You may have realized, by now, that all these features are in close relation to each other. It’s no coincidence, and moderation follows the same steps. When we talk about moderation, we are talking about the ability to keep your head cool and focused and not going crazy. And, guess what, that includes more than diminishing your ill practices. You may already know the conventional definition of moderation; avoiding excesses is a good philosophy and it certainly should be applied to FOREX trading. You need to avoid biting more than you can chew; learn when a risk is not worth taking, or how much is enough. Additionally, controlling how much you work is also important; recognize when you’ve made enough and rest. Resting is important. Moderation also applies to keeping your mind straight under stress which is something you must be able to do if you wish to last long enough to enjoy your earnings.
- Risk Knowledge and Management.
Close relative to moderation, good FOREX traders know that risk is a fundamental concept for trading. Managing risk is not only avoiding risks; it also means recognizing when to take them. That old saying, “no pain, no gain” is common knowledge because of how it stays true in almost any endeavor. Remember that risk is constant in FOREX and you can’t run away from it forever. Actually, you don’t want to run away from risk but learn how to work around it and turn anything into profit.
Being a good FOREX trader means, ultimately, to be able to take any hit and coming back. All the strategies and features we’ve covered will help you come back from any situation. However, resilience is a characteristic that you develop over time. Just keep in mind that, no matter how much you lose or how long is your fail streak, you can always come back if you set yourself to it.