Whatever your personal opinion, successful traders do require certain skills and here are a few:
1. Discipline to trade to follow the plan
One of the key skills a trader must have is the discipline to follow the plan. When things are going wrong and the markets are not playing as expected, it’s tempted to abandon the plan and trade by gut instinct but this is a mistake. In fact, it’s times like those when the trading plan becomes even more crucial.
2. Intense work ethic
Some people get into the markets for the money alone and it is these people who normally do not last very long. Surviving in the markets means having the work ethic to do your homework on the markets, to analyse future opportunities and to go over all of your previous trades looking for ways to improve. In the end, it’s no surprise that those who do well in the markets are those that stick at it for long hours every day of every week.
3. Recognising when you’re wrong
Being able to recognise when you’re wrong is what sets winning and losing traders apart. If the price action is telling you that your trade is wrong, you need to have the strength to throw in the towel and close the position out for a loss – before it gets even worse. All traders make losing trades so traders who can’t recognise when they are wrong stand to lose much more hanging on.
4. Pulling the trigger
To succeed in trading requires finding profitable opportunities the moment they appear so it is necessary for a winning trader not only to find the trades but to act on them without delay. Following technical indicators and watching price action can lead to good trade signals but if pulling the trigger on a trade is a problem, it will always be difficult to make money. Because, profitable trading opportunities rarely exist for very long in the forex markets.
5. Patience
Patience is required in large amounts in order to be a successful trader. You must be patient to wait for the perfect opportunity to trade, then you must be patient enough to watch that trade as it loses money. Finally, you must be patient enough to go through the many years of hard work which it takes to become good at trading.
Editors’ Picks
EUR/USD fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold stays in consolidation above $2,300
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.
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