5 Characteristics of a Successful Forex Trader
To become successful here are the top 5 Characteristics of a Successful forex trader.
1. Seeing the big picture
Can you able to separate the small details from the bigger picture? This is critical in two aspects. First, separating the current movements from the larger trend. The second aspect relates to money management: being able to separate your current trade from the situation in the account and the bigger plan.
Many traders lack the patience to educate themselves before jumping into a trade or don’t wait for an excellent opportunity, as Andriy mentions. Others don’t wait for long enough for their trade to run its course. Or, upon meeting a success, they have the patience to continue trading in same position sizes, and quickly increase the positions, hoping to win more but burning their account fast.
3. Being able to Adapt
Market conditions change all the time, and the good trader needs to be able to adjust. Your trading system cannot work well always. Changes in patterns occur all the time, and you will need to tweak the system, if not completely change it. Being able to adapt also applies to the fundamental analysis: strong currencies may hit the wall when the tide turns against the own economy. A weak currency can help a country economy recover over time.
When uncertainty is high in the markets, the good trader will be extra careful when taking risks. It means focusing on more expected currencies, lowering position sizes when necessary or even taking the break from the markets. Winning in forex trading is not limited to making winning trades, but also minimizing losing ones.
5. Identifying your Weaknesses
If you can be fully aware of your weaknesses, you are half the way to solving the problems. All the important characteristics mentioned above will be closer to reach if you can see when you are too far from them and acknowledge them. Your fundamental character will not change, but you will still adapt better to changing conditions, and you will be able to stay a bit more patient than usual.