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 tests nine-day EMA support near 1.1850
EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.
GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus
The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.
USD/JPY rebounds above 153.00 ahead of US inflation data
USD/JPY stages a comeback and regains 153.00 in the Asian session, snapping a four-day losing streak amid some repositioning ahead of the US CPI report. However, expectations that Japan's PM Sanae Takaichi could be more fiscally responsible, along with bets that the BoJ will stick to its policy normalization path and the risk-off mood, could support the safe-haven Japanese Yen, capping the pair's upside.
Editors’ Picks
USD/JPY rebounds above 153.00 ahead of US inflation data
USD/JPY stages a comeback and regains 153.00 in the Asian session, snapping a four-day losing streak amid some repositioning ahead of the US CPI report. However, expectations that Japan's PM Sanae Takaichi could be more fiscally responsible, along with bets that the BoJ will stick to its policy normalization path and the risk-off mood, could support the safe-haven Japanese Yen, capping the pair's upside.
Gold: Will US CPI data trigger a range breakout?
Gold retakes $5,000 early Friday amid a turnaround from weekly lows as US CPI data loom. The US Dollar consolidates weekly losses as AI concerns-driven risk-off mood stalls downside. Technically, Gold appears primed for a big range breakout, with risks skewed toward a bullish break.
AUD/USD consolidates below 0.7100 as traders await US CPI report
AUD/USD consolidates the previous day's retracement slide from the vicinity of mid-0.7100s, or a three-year high, holding below 0.7100 as traders move to the sidelines ahead of Friday's release of the US consumer inflation figures. In the meantime, the divergent RBA-Fed outlooks might continue to support spot prices amid subdued US Dollar demand, though the risk-off impulse could act as a headwind for the Aussie.
Bitcoin, Ethereum and Ripple stay weak as bearish momentum persists
Bitcoin, Ethereum and Ripple remain under pressure, extending losses of over 5%, 6% and 4%, respectively, so far this week. BTC trades below $67,000 while ETH and XRP correct after facing rejection around key levels. With bearish momentum persisting and prices staying weak, the top three cryptocurrencies continue to show no clear signs of a sustained recovery.
A tale of two labour markets: Headline strength masks underlying weakness
Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.
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