Some forex traders never reach their potential, sometimes because they start off badly and never recover. Others start off too well, they make money right off the bat and are completely unprepared and over leveraged when the bad times hit.
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:
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 flirts with daily highs, retargets 1.1900
EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.
GBP/USD remains well bid around 1.3650
GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.
USD/JPY edges up above 153.50 with all eyes on US CPI figures
USD/JPY appreciates above 153.00 but remains on track for a 2.4% weekly loss. Trading volumes remain subdued on Friday, ahead of the IS CPI release. The Yen remains supported by hopes of a stable government and calls for further BoJ tightening.
Editors’ Picks
EUR/USD: Yes, the US economy is resilient – No, that won’t save the US Dollar Premium
Some impressive US data should have resulted in a much stronger USD. Well, it didn’t happen. The EUR/USD pair closed a third consecutive week little changed, a handful of pips above the 1.1800 mark.
Gold: Metals remain vulnerable to broad market mood Premium
Gold (XAU/USD) started the week on a bullish note and climbed above $5,000 before declining sharply and erasing its weekly gains on Thursday, only to recover heading into the weekend.
GBP/USD: Pound Sterling remains below 1.3700 ahead of UK inflation test Premium
The Pound Sterling (GBP) failed to resist at higher levels against the US Dollar (USD), but buyers held their ground amid a US data-busy blockbuster week.
Bitcoin: BTC bears aren’t done yet
Bitcoin (BTC) price slips below $67,000 at the time of writing on Friday, remaining under pressure and extending losses of nearly 5% so far this week.
US Dollar: Big in Japan Premium
The US Dollar (USD) resumed its yearly downtrend this week, slipping back to two-week troughs just to bounce back a tad in the second half of the week.
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