What do the successful Forex traders have in common? What sets these people apart from the less successful ones? There are a lot of forex trading myths around. Some are true and some not. Let’s see what the main attributes that the world’s most successful Forex traders share are.
1. Positive Attitude Toward Losses
Not every loss is a bad thing, especially on Forex. Don’t allow them to discourage you and make you emotional. There is always something new to learn from every loss no matter if you are investing 5 or 1000 dollars, and no matter your trading experience. What you can do after losing trade does reflect upon your trading decision and implement that knowledge onto your next trades. A constructive and positive mindset is a must if you want to be amongst the most successful traders in the forex market.
2. They Rely On Price Action
Relying on the technical analysis and price action is the foundation of every good trading plan and Forex trading strategy. All the richest and most successful forex traders implement price action in some form within their strategy. You must detect the key levels of the market, check the mindset of other traders, and see what are the buying and selling points to react accordingly. The trade can be made without using price action, but it’s quite like driving a car with one eye closed and the most prosperous Forex traders are aware of it.
3. Success Requires Defined Trading Edg
A trading edge is the exact set of skills that sets successful traders apart from other traders. And these sets of skills are the secret weapon that leads them to make out most of the market. A trading edge is about your strategies, risk-reward ratio etc. but also about your trading styles, attitude toward losses, trading time frames, what you do with your profits. The richest traders have their trading routine develop over time, and they always stick to it, no matter the circumstances. To create your trading edge, you need to master at perfection several set of trading factors, not all of them. For example, you can be excellent at determining trend strengths, at reading candlestick charts or identifying key chart levels.
4. Successful Forex Trader Calculate Money Risk
There is no profitable trade without calculating the percentage you put at risk before taking a trading position. The trading calculator is the ultimate tool for all those who strive to make big profits. It’s important to perceive the risk in terms of dollar amount and not percentages. That will help your brain to visualize your risk better and determine if you are ready to lose that specific amount of money. The percentage does not carry the emotional weight that money does.
5. They Know When To Take a Break
No matter if you are about to win or lose. You must know when to leave the trade. When your strategies turn out to be effective and bring you money from one position to another, you don’t feel like leaving. You feel like you cannot stop trading. It can get you into trouble and make you lose the money. So tap yourself on the back and leave the table until you have that money in the pocket.
6. They Do It With A Passion
It could be trading discipline, experience, and implementation of a good strategy, but most importantly, they think differently, and their primary concern is not just a high win rate. When it comes to Forex trading success, it’s also about the joy and accomplishment it adds to your everyday life. The important personal trait of trading professionals is doing trade with a passion. Without a passion for trading, you can’t achieve success. Although the motivation that gathers people to enter the Forex market is money, it’s not only about the money. Without an inherent passion for trading, you cannot make it as a successful trader.