To be successful takes many years of discipline and practice. Many of the most successful traders lost money at the beginning and many went broke more than once. But those who came through have a few things in common:
Stop and reverse
One thing that separates the really successful traders from the amateurs is that while an amateur may be able to cut a losing trade a successful trader has the ability to not only cut the trade but to reverse and go the other way. When momentum changes quickly, sometimes the best move is to quickly change direction so you don’t miss out on any more profit.Getting aggressive
Amateur traders sometimes get nervous when holding a winning position and already start to think about banking gains. However, the really successful forex traders have the opposite approach. They become way more aggressive when they’re winning and only scale back their risk when they’re losing. Successful traders know that wins tend to come in streaks.Admitting they’re wrong
It takes a new trader a long time to understand one of the basic principles of trading – that the market has no ulterior motive and cannot be controlled. Successful traders have learnt over many years to treat the market with respect. They cannot control it, they can only control themselves, so they stop trying to predict the market and learn to go with the flow. This means successful traders have no problem admitting when they’re wrong and this is crucial in order to get out of losing positions.Enjoying the job
A big part of what makes a trader successful is that they really do love what they do. Some traders think they enjoy trading but the truth is they only enjoy the rewards. They don’t actually enjoy the process of watching charts and making trades. The best traders find trading an immensely satisfying thing to do and this is why they are able to spend long hours at the desk putting in the hard yards.Taking it seriously
Finally, another thing successful forex traders have in common is that they treat it seriously, like a business. They never trade when they’re tired or when they’re drunk. They never come to the markets late and they always make risk management their number one priority.
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 keeps consolidating ahead of US first-tier figures
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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