Trader’s Secrets: Characteristics You Need to Become a Successful Forex Trader!
Forex trading is one of the most popular trades today. This is sought after by various traders of all kinds due to its many beneficial factors. Factors like, it being the largest market, most liquid trade, is open 24/7 and runs on a decentralized system.
Despite its many advantages, all trades aren’t exempted from cons. And for forex trading, its known disadvantage is being pretty volatile. Since this trade is also decentralized, it’s not properly regulated.
Now you know this trade’s fair share of pros and cons, you can now decide if this trade is for you. And if you still see a future with forex, then now all you can do is use its pros and cons to your advantage. (At least you can try.)
A good sum of forex traders fails the first few years due to insufficient preparation. Trading takes skill, knowledge and technique but what most starting traders do is simply, start. No training, no background knowledge, no strategy, nothing.
To ensure your journey isn’t going to go downhill, you should start by working on essential characteristics before finding a strategy and honing skills. To help you out, down below is everything you’ll be needing:
1 – Every successful trader is always PREPARED!
Before actually trading, you need to prepare yourself. Preparation in a sense of – picking out a strategy, getting to know the market, picking out a platform and so on. Do everything before actually trading.
Preparation is to ensure all your focus and energy is used entirely on trading. So before anything else, prepare for upcoming economic events, liquidity conditions, rise and fall of interest rates and so on.
2 – Emotions will make you sink like anchors!
One of the most common reasons why trades fail is due to emotions. A trader who makes decisions based on their feelings is bound to lose profit. That’s why you need to have a strategy to follow and to STICK to.
An example of ‘letting your emotions’ take over trading decisions is: Trying to win back a loss by trading right after. Every decision you make that’s not part of your strategy and is done out of impulse is emotionally driven.
3 – Minimize loss by being content!
One characteristic all successful traders have in common is content. Once you make a profit out of a recent trade, you minimise loss. You can modify the use of stop-loss, stepping back after profiting and even minimizing the size of winning positions.
Once you profit, that’s already a win. No need to try squeezing a damp rug for more water. After a profit, settle down to minimise the risk of losing what you’ve already gained. Being greedy is a great way to encourage getting what you want but can also bring you more harm than good.
4 – An organized trader is a good trader!
Keeping your trading records is a great way to track your wins and losses. This can also help you identify the things you should and shouldn’t. Short-term trades ring out results are faster compared to long-term trades. But both trades can profit from this trait!
A way to stay organized with your trades is by jotting down every trade you make or the most significant ones. You can either physically write it down or do it digitally. Keeping records can also help you alter your trading style for the better.
5 – Be adventurous!
Last but not least is to be adventurous! As a starting trader, with no commitments yet, be adventurous and scout for different markets, different trading strategies, different trading platforms and so on!
Scouting and exploring is a great way to map out your options and keep you open to other trades, techniques and platforms. Every successful trader holds an open mind so consider learning and knowing about other things before settling down to your niche trade, strategy and platform.
How much can a successful forex trader make?
How much a prosperous forex trader makes a month merely depends on the strategy they use, the platform they work with, the positions they open and so on. But to give you an idea of what a successful forex trader can make, it’s around 5 to 15% on return per month.
But for professional traders, you can expect a whopping $3,000 to $10,000 per month. So to be able to make hefty profits, you surely need to follow and hone the 5 characteristics! And who knows, you might just be the next big trader novices aspire to be!
How can I start forex trading?
Now you know the 5 characteristics of a successful trader, you can now start to practice. Once you pick out a great trading platform, use their demo account to practice trading. Demo accounts give you an insight into what it’s actually like to trade.
On demo accounts, you can find training tools, analytical tools, charts and other features. This is a great way to test out the waters of trading without actually risking money. Plus demo accounts are guaranteed by professional traders to be a great way to practice before trading.
After you’ve practised, you can now choose to open a live account. Depending on the platform you choose, requirements, initial capital, fees and regulations may vary. So make sure to scout, compare options and choose a brokerage that best suits your strain style and needs.
How much do successful forex traders make?
How Much Do Professional Forex Traders Make Per Month? Forex day traders with a good strategy can make a 5-15% return on their portfolio every month. Professional, employed traders are usually paid $3,000-10,000 per month.
Take away
Given what you know now, the odds of you becoming a successful forex trader have now increased! But make sure, for your trades to become fruitful, stick to every single one of the characteristics mentioned.
Plus all these traits are attainable, all you need is the willingness and determination to learn. So now you’re a step in the right direction, you can now start your trading career with flying colours!