Whatever your personal opinion, successful traders do require certain skills and here are a few:
1. Discipline to trade to follow the plan
One of the key skills a trader must have is the discipline to follow the plan. When things are going wrong and the markets are not playing as expected, it’s tempted to abandon the plan and trade by gut instinct but this is a mistake. In fact, it’s times like those when the trading plan becomes even more crucial.
2. Intense work ethic
Some people get into the markets for the money alone and it is these people who normally do not last very long. Surviving in the markets means having the work ethic to do your homework on the markets, to analyse future opportunities and to go over all of your previous trades looking for ways to improve. In the end, it’s no surprise that those who do well in the markets are those that stick at it for long hours every day of every week.
3. Recognising when you’re wrong
Being able to recognise when you’re wrong is what sets winning and losing traders apart. If the price action is telling you that your trade is wrong, you need to have the strength to throw in the towel and close the position out for a loss – before it gets even worse. All traders make losing trades so traders who can’t recognise when they are wrong stand to lose much more hanging on.
4. Pulling the trigger
To succeed in trading requires finding profitable opportunities the moment they appear so it is necessary for a winning trader not only to find the trades but to act on them without delay. Following technical indicators and watching price action can lead to good trade signals but if pulling the trigger on a trade is a problem, it will always be difficult to make money. Because, profitable trading opportunities rarely exist for very long in the forex markets.
5. Patience
Patience is required in large amounts in order to be a successful trader. You must be patient to wait for the perfect opportunity to trade, then you must be patient enough to watch that trade as it loses money. Finally, you must be patient enough to go through the many years of hard work which it takes to become good at trading.
Editors’ Picks
AUD/USD extends gains due to improved risk appetite
The Australian Dollar maintained its winning streak for the fourth consecutive session on Monday, buoyed by a hawkish sentiment surrounding the Reserve Bank of Australia. This optimism bolsters the strength of the Aussie Dollar, providing support to the AUD/USD pair.
USD/JPY snaps three-day losing streak above 153.50, Yellen counsels caution on currency intervention
The USD/JPY pair snap a three-day losing streak during the Asian trading hours on Monday. The uptick of the pair is bolstered by the modest rebound of the US Dollar and US Treasury Secretary Janet Yellen’s comments on potential Japanese interventions last week.
Gold holds below $2,300, Fedspeak eyed
Gold price loses its recovery momentum around $2,295 on Monday during the early Asian session. Investors will keep an eye on Fedspeaks this week, along with the first reading of the US Michigan Consumer Sentiment Index for May on Friday.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.
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