You do not become successful Forex trader overnight, but with consistent discipline, patience, practice and experiences. In order to learn to trade forex (or any other financial market) you have to invest time and energy to become a successful trader.
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. Learning to trade is an investment in yourself. If you want to learn to trade forex, stock, futures find yourself a forex mentor if you want to fastrack your trading progress and save time.
13 habits of successful forex trader
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. Learn to trade forex by focusing on yourself and our trading.
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.
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.
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.
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. If you have a passion for your trading, learn to trade forex and try to become the best trader possible. Growing Account Steady
He understands usage of a good Money Management rules in combination with few proven entry and exit rules is key to grow his trading account slow and steady without the big draw down on the way.
High-timeframes 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.
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.
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. Invest some time in your trading plan, trading journal, and learn to trade forex with the right trading skills and habits.
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.
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/week, wait for a possible trading opportunity, and then enter, exit or do nothing based on his trading system and plan rules.
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.
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.
Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the fx market. Don’t trade with money you can’t afford to lose. You must be aware of the risks of investing in forex and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Weekly forex outlook opinions on this page are for informational purposes only and are not investment advice. You should do your own research before making any investment decisions and take full responsibility for your own results, performance.
Editors’ Picks
EUR/USD steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.
RECOMMENDED LESSONS
Making money in forex is easy if you know how the bankers trade!
Discover how to make money in forex is easy if you know how the bankers trade!
5 Forex News Events You Need To Know
In the fast moving world of currency markets, it is extremely important for new traders to know the list of important forex news...
Top 10 Chart Patterns Every Trader Should Know
Chart patterns are one of the most effective trading tools for a trader. They are pure price-action, and form on the basis of underlying buying and...
7 Ways to Avoid Forex Scams
The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?
What Are the 10 Fatal Mistakes Traders Make
Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.