Traits of Successful Traders in Forex Trading
In the forex world, information spreads across the globe and figuring out a proper strategy can leave a lot of traders scratching their heads. Add to that, and a couple of bad trades could wipe out any trader’s account. So, how do you develop a strategy to give you the best chances in the market?
Develop these following 5 Best Traits of Successful Traders in Forex can improve your trading. Successful traders aren’t born. They are created by working on these trader traits
Watch on below Video to Develop Four Hour Winning Trading Strategy
5 Best Traits of Successful Traders in Forex Trading
1. Know Thyself
It is a simple adage, but as traders setting goals is the first priority, and to do that, you need to understand your trading personality.
- Day trading? Scalping? Automated trading?
- How risky are you?
- Will you be stuck to the computer all day? Or do you prefer to set it and forget it?
Before you dive in, see if your goals align with the personality.
2. Get Education
Information is everywhere. It is especially true when dealing with forex because the implication is global. How do the interest rates in the U.S affect EUR/USD? Can you turn economic growth in Europe into a promising trade?
Education is essential, and many forex brokers offer free education, whether it is on demand or in live trading rooms. You can find a world of traders publishing their market insights and up-to-date economic data on Facebook and Twitter.
3. Cut Losses and Let Profit Runs
Nobody likes to lose. In the middle of losing, it’s easy to imagine the desire for a turnaround is somewhat overwhelming. That becomes problematic when trading.
Human psychology infers that people hang on to losses longer than they should. Moreover, in the face of profit, people seem to jump out of a trade to secure their winnings we want those pips secured.
One way to do is with stops and limits. You can predetermine the amount you want to risk and the amount you want to profit. That has the benefit of eliminating human emotion from your trading.
Once you set stops and limits, don’t touch them!
4. Use Leverage Effectively
Many traders come to the forex market for the wide availability of leverage the ability to control a trading position larger than your available capital.
However, while using high leverage has the potential to increase your gains, it can just as quickly, and perhaps more importantly, magnify your losses.
It has been found that the traders can be more successful when they limit the amount of leverage used, typically 10:1 or less. It means they never traded more than 10% of their account balance, which gives trades time to swing in the market without being stopped out by the margin call.
Click on Below Video: Trading Forex with Leverage
5. Trade the Right Time of Day
As the world turns, the opening and closing of the market can affect the volatility of some major currency pairs, like EUR/USD and GBP/USD. Through research, analysts advise that the traders are getting more profitable when the markets are less active.
It appears to us that traders are more successful range trading European currency pairs between 2:00 pm and 6:00 am New York time. Asia-Pacific currencies look difficult to range trade at any time of day as they tend to remain fairly active during Western off hours.