Traits Of Successful Forex Traders
Why does one Forex trader fail while another has success? What is it that sets the Forex winners apart from the Forex losers? Believe it or not, there are many qualities that successful Forex traders share. In the same way, there are qualities that losers share too. For example, people who fail at Forex tend to make trades based upon emotion rather than logic. They also hold onto losses because they are afraid to admit they made a wrong trade. Successful traders avoid those mistakes but they also have qualities that help them succeed. They take positive actions regularly that evolve into habits that turn them into successes. When you learn and apply these characteristics, you have a greater chance of being successful too.
Setting goals is essential. Successful Forex traders are goal oriented. Setting goals pushes you to do your best as you strive to reach your goals. However, you have to set good goals. Your goal has to be realistic. You no doubt would love to double your money every day. However, as a goal, that is unrealistic. When you have an unrealistic goal, it undermines your self confidence and sets you up for failure. Your goal also has to be attainable based upon your capabilities. Set a goal that matches your skill level. As your skills improve, your goals expand. In order to work for you, your goals must be realistic and attainable. One way to go about this is to set short term goals. Start with small ones that are easy to achieve. This builds your confidence; you can then raise the bar on your goals as your skills improve.
The third aspect of a good goal is measurability. If your goal is not specific and cannot be measured, it really isn't a true goal. If your only goal is to be wealthy it is too unfocused. Define your idea of wealth in specific numbers. As your wealth grows, so will the numbers that represent your idea of wealth. If you cannot define your goal and cannot measure it, then you have no way to determine how close you are to achieving it. It makes it impossible to change your strategies to help you meet your goals. Learn how to set goals like successful Forex traders who set highly specific goals and then go after them with confidence. Confidence is important to keeping you rational and disciplined when it comes to investment trading. When you start with small achievable goals, it helps you build much needed confidence.
Successful Forex traders also use skill and logic when making trading decisions. They study Forex, learn all they can, and then apply that knowledge to make intelligent choices when it comes time to trade. They don't obsess over missing the next big thing. Instead, they focus on making good solid trades. A common mistake many beginner Forex traders make is jumping on trades because they feel like it is just too good to miss out on. Trading based upon emotion or hunches is more like gambling rather than investing. Everyone involved in trading is familiar with that feeling of elation when they make a trade based solely upon desire and hunches. However, the most successful Forex traders do not give in to these emotions. They approach investing in a logical manner and remain disciplined.
Successful Forex traders have a great deal of knowledge about the market but it is not humanly possible for one person to stay abreast of the entire market and all of the events that affect it. Therefore, a wise trader picks a specific area of investing and learns it like the back of his hand. For example, you may have an interest in trading commodities futures. Then you should learn all you can about that particular market. Learn its history and current events that affect it movement. It is much easier for you to become an expert in the commodities futures market than it is to become an expert on every single investment niche.
If you aren`t interested in currency trading, don`t trade in it. Your lack of knowledge and motivation will cause you to lose focus and make mistakes. Successful Forex traders tend to specialize; they pick an area to study and they follow it closely, learning from past trends and patterns, and from their own trades. If you`re a beginning trader, I recommend focusing on one investment vehicle and it`s market. Learn all you can, about the market and about yourself, before you move into other investment types.
Whether you`re a beginning trader, a trader with some experience, or someone who makes his or her living strictly from trading, you can be successful. Many people think they have to have significant capital, or years of experience, to trade successfully. That`s not true. It`s also true that if you don`t stay disciplined, focused, and rational, you`ll end up as a losing trader, regardless of your level of expertise. All successful Forex traders started as small investors; they didn`t trade more than they could safely risk, they learned from their mistakes, and they developed systems that worked for them and that fit their personal styles. There aren`t different strategies for different levels of Forex traders because the principles are the same for everyone in the markets: logical, focused, disciplined trading creates success. - 23217
Setting goals is essential. Successful Forex traders are goal oriented. Setting goals pushes you to do your best as you strive to reach your goals. However, you have to set good goals. Your goal has to be realistic. You no doubt would love to double your money every day. However, as a goal, that is unrealistic. When you have an unrealistic goal, it undermines your self confidence and sets you up for failure. Your goal also has to be attainable based upon your capabilities. Set a goal that matches your skill level. As your skills improve, your goals expand. In order to work for you, your goals must be realistic and attainable. One way to go about this is to set short term goals. Start with small ones that are easy to achieve. This builds your confidence; you can then raise the bar on your goals as your skills improve.
The third aspect of a good goal is measurability. If your goal is not specific and cannot be measured, it really isn't a true goal. If your only goal is to be wealthy it is too unfocused. Define your idea of wealth in specific numbers. As your wealth grows, so will the numbers that represent your idea of wealth. If you cannot define your goal and cannot measure it, then you have no way to determine how close you are to achieving it. It makes it impossible to change your strategies to help you meet your goals. Learn how to set goals like successful Forex traders who set highly specific goals and then go after them with confidence. Confidence is important to keeping you rational and disciplined when it comes to investment trading. When you start with small achievable goals, it helps you build much needed confidence.
Successful Forex traders also use skill and logic when making trading decisions. They study Forex, learn all they can, and then apply that knowledge to make intelligent choices when it comes time to trade. They don't obsess over missing the next big thing. Instead, they focus on making good solid trades. A common mistake many beginner Forex traders make is jumping on trades because they feel like it is just too good to miss out on. Trading based upon emotion or hunches is more like gambling rather than investing. Everyone involved in trading is familiar with that feeling of elation when they make a trade based solely upon desire and hunches. However, the most successful Forex traders do not give in to these emotions. They approach investing in a logical manner and remain disciplined.
Successful Forex traders have a great deal of knowledge about the market but it is not humanly possible for one person to stay abreast of the entire market and all of the events that affect it. Therefore, a wise trader picks a specific area of investing and learns it like the back of his hand. For example, you may have an interest in trading commodities futures. Then you should learn all you can about that particular market. Learn its history and current events that affect it movement. It is much easier for you to become an expert in the commodities futures market than it is to become an expert on every single investment niche.
If you aren`t interested in currency trading, don`t trade in it. Your lack of knowledge and motivation will cause you to lose focus and make mistakes. Successful Forex traders tend to specialize; they pick an area to study and they follow it closely, learning from past trends and patterns, and from their own trades. If you`re a beginning trader, I recommend focusing on one investment vehicle and it`s market. Learn all you can, about the market and about yourself, before you move into other investment types.
Whether you`re a beginning trader, a trader with some experience, or someone who makes his or her living strictly from trading, you can be successful. Many people think they have to have significant capital, or years of experience, to trade successfully. That`s not true. It`s also true that if you don`t stay disciplined, focused, and rational, you`ll end up as a losing trader, regardless of your level of expertise. All successful Forex traders started as small investors; they didn`t trade more than they could safely risk, they learned from their mistakes, and they developed systems that worked for them and that fit their personal styles. There aren`t different strategies for different levels of Forex traders because the principles are the same for everyone in the markets: logical, focused, disciplined trading creates success. - 23217
posted by X - Men @ 4:55 AM
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