Thursday, 26 September 2019

5 The Best Habits Of a Successful Forex Trader

Many people are interested in forex trading because of the lifestyle associated with trading success. For example, racing cars, luxury holidays and trading in exotic places are often exhibited by successful traders.

Although they often spit their trading results, not many successful traders are willing to tell the hard work of trading career from scratch for years. When in fact, being a successful forex trader is the same as a profession in another occupation; need hard work and perseverance.

Starting from the learning stage to practicing on a demo account, this article will review the 6 best habits of successful fores traders that can inspire you.
1. Diligent Learning
One thing that all successful forex traders always have is a never-ending curiosity and love for learning new things. So, if you want to be as successful as they are, be diligent in your studies and continue to explore the science of trading. The forex market is one of the most dynamic and active markets in the world, so you must always be at the forefront of following the news that is being talked about and what it is affecting.

2. Be Active
In a best-seller book by Stephen Covey entitled "The 7 Habits of Highly Effective People", explained that being active is an important part of the road to success. As a trader, being proactive means being brave to take action, whether doing something or things that contribute to your success as a trader.

Below are a few examples of proactive actions that can help your trading:

Develop daily routines to grow trading efficiency.
Set aside time to practice and learn, can by watching trading videos, learning technical analysis, also attending webinars or trading interests.
Reviewing price patterns on a chart.
Test and perfect trading strategies.
Subscribe or follow updates of successful traders such as Brett Steenbarger, Steve Ward and Nial Fuller.
Monitor the development of global markets by creating a habit of monitoring news sources such as Bloomberg, CNBC, and the BBC.

3. Develop a Trading Plan
You may already be familiar with the phrase "failing to plan is the same as planning to fail". Even though it sounds cliché, it has a point and it becomes an important component in trading success.

It doesn't matter whether you are a new trader or someone who has been trading for years

No need to be too complicated, a trading plan can cover just these basic aspects:

Entry and Exit Level.
Trading size.
Stop Loss level.
Take Profit level.
Indicator used to confirm Entry and Exit.
Apart from the importance of having a trading plan, you also need to always apply discipline. What is the point of you having a map (trading plan) if you don't end up using it? Always remember, if you have a trading plan, don't forget to be disciplined about it.

4. Emotion Control
It is common knowledge that fear and greed are the two strongest emotions that move the market. Traders' fear of missing out on trading opportunities usually triggers them to enter the market without confirmation, whereas, the rush to open positions often results in defeat if the market price moves against their estimates.

Meanwhile, greed is also an emotion that needs to be watched out and controlled, because it can encourage the desire of traders to pursue positions (overtrading), or take trading sizes that are too large in one position. In both scenarios, you are both endangering your account if greed takes control.

If you want to be a successful trader, the ability to manage your emotions as well as possible is very important. So before pressing the open position button, stop for a moment and think again whether the position is correct according to the following parameters:

Are these orders determined by the steps according to the trading strategy?
Do the settings match your risk tolerance limits?
Do you understand the risk of loss if the price moves do not match the estimates?

5. Building Risk Management
Every successful trader always emphasizes the importance of risk management. This is true: your success as a trader depends to a large extent on how formidable your risk management is. In its most basic form, risk management can be described in several components.

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