13 Habits of Successful Forex Trader

Success takes time

You do not become successful Forex trader overnight, but with consistent discipline, patience, practice and experiences.

Successful Forex trading is “build” from 3 things:

• Trading Strategy
• Money & Risk Management
• Trading Mindset

Trader who master all three above is on the way to reach consistent profitability on the long-term.

 

13 Habits of successful forex trader

 

1) Trading Strategy

He masters one powerful and proven trading strategy (edge) which comes with strict entry and exit rules. To survive and succeed trading the financial markets can be possible only if you know exactly what you are looking for on the charts and the way you manage the positions once they move in your favour or against.

 

2) Trading System is Guide

He understands trading system is his daily guide to long-term trading success. Rules of his trading edge protects him against bigger mistakes, which can destroy his trading confidence and trading account.

 

3) Forex Trading Plan

Successful trader has and follow his proven trading plan. Before he even thinks about placing the order on the market, he has to know which products he will trade, how much he will risk on each trade he take, what is his daily trading routine etc.

 

4) Managing the Risk and Exposure

He manage risk on every trade. Without any excuses always calculates the risk and set the Stop-Loss order and every trade. Successful trader understands “Stop-Loss” is not a “bad thing”, but it actually protects him from the bigger risk and exposure. Stop-Loss is the difference between his entry and exit price, when his trading positions moves against him.

 

5) Planning on the Long-Term

On first place trader wants to protects his capital and on the long-term minimise his trading losses. Serious traders plan their trading for the next 10-20 years, and without good money and risk-management rules serious trader can’t survive.

 

6) Growing Account Steady

He understands usage of a good Money Management rules in combination with few simple entry and exit rules and right trading mindset is key to grow his trading account slow and steady without the big draw down on the way.

 

7) High-Time frames are King

He never neglects the usage of the higher time frames. Successful trader uses and enter based on the high time frames. It does not matter what kind of trading style you have. Before you even open any position is important, that you use high time frames in your analysis to understand the major market direction and key levels as Support and Resistance zones. In case the high time frames are confirming much bigger move, you can leave your positions open for longer and aim for more. Depends on traders trading strategy and philosophy.

 

8) Charts and Price

He always focuses and pay attention on the chart and price. He is aware of the big impact news for his trading timing, but he is not over analysing and overthinking about the news and fundamentals.

 

9) Believe In Yourself

Successful trader believes in himself, his trading edge, he is confident once he masters his trading process and always trade only based on his own trading decisions. He sticks to his trading edge, rules and trading plan. He understands trading is his personal business and he is responsible for all his decisions.

 

10) Forex Trading Journal

Successful trader has his own trading journal, where he tracks every trade and decision made, so he can analyse his trades, learn from them and improve his trading.

 

11) Life Outside of Trading

Successful trader is organised about his trading, simple, humble, relaxed, and have other hobbies and activities. He understands he does not have any impact on the market. He focuses only on things he can control – his trading process, charts analysis, look at them few times per day, wait for a possible trading opportunity, and then enter, exit or do nothing based on his trading system and plan rules.

 

12) Positive Mindset

Successful trader has positive view on life and trading, set his goals and try to reach them, no matter what others are saying or think about it.

 

13) Discipline over everything

Successful trader practice discipline and patience day after day, week after week because he understands those two determines whether he will be successful or not on the long-term.

 

Zan, from BecomingTraderFX