What does it mean to be successful?
Before going into the nine attributes, I want to clarify how we will define success in this article. Every history of a successful Forex trader must contain consistent profits. I think we all agree that most operators use profits to compare the success of another.
However, success in any attempt is more than money. It’s also about the joy and passion that adds to your life. This is something I can’t learn. I can help with drawing important levels, determining trend strength and price action signals. However, I cannot teach passion.
Whether you like commerce or not. There is no middle way. So the question is if you don’t have a passion for commerce, can you really succeed? Think about it for a moment. If you don’t quite like what you do every day, can any amount of money make you happy?
They don’t lose
No Forex trader is without loss. But there is a clear difference between how the beginner loses and how the successful Forex trader loses.
What is the difference?
Mentality.
Most people who start in the Forex market see a loss as something worse. It is a way to indicate that they have done something wrong. And doing something bad is bad. At least, that is what we have come to believe in the course of our lives. However, the successful operator does not see a loss as a “bad” thing. It is not something that the market has not done to you either. The Forex market does not know where you entered or where your stop-loss order is.
Unlike you, the market is always neutral. So if you lose, it’s a matter of thinking about what you could have done better.
Don’t get me wrong, no one would like to see an exchange against them. I don’t care if you’ve been active for a month or ten years, it’s always more fun to make money than to lose it.
That said, just because an exchange is not done your way, it doesn’t mean you have to take it personally. Thinking like this will only let you dig a deeper hole.
The successful Forex trader has the mentality that a loss is just a feedback.
It’s the way the market refutes a trading system. That’s the only thing the Forex market has the possibility to do, because it doesn’t know anything about you or where you came on the market, and you don’t care either. Losses can be a powerful way to learn. Don’t forget that even an operation ending as a loss can be the right decision.
Use the stock market price
Every Forex trader I’ve met uses price action in some way, form or way.
This does not mean that they use the price action in the same way as I do, but they use some form of price action as part of their business strategy. Whether a trader uses gross price action or simply used to identify the key levels in the market, price action plays an important role in any strategy. That’s because it serves as a representation of psychology within a market. It gives us an idea of the minds of other merchants.
Having an idea of where buying and selling orders are in the market is crucial to becoming a successful Forex trader. You can strengthen any business strategy by providing areas to monitor both potential inflows and profit targets. Forex trading without using some form of price action is like trying to drive with one eye closed. It can be done, but I wouldn’t recommend it.
Have a clear commercial advantage
I see many conversations on the internet about the need for a trader to develop and define an advantage. And, to be honest, most of what I have read is quite alarming. No wonder why so many merchants struggle to understand what an advantage is and how they can develop their own advantage. So what exactly is a commercial advantage and why is it important?
An advantage is everything to do with the way you work, which can help you put the odds to your advantage.
It is a combination of the time frame in which you operate, the pricing action strategies you use, the key levels you have identified, the relationship between risk and reward, and other factors. It even includes your pre- and post-negotiation routine.
How do they deal with losses? What do you do when you win? These are all the things that make up your business advantage.
Think of it this way……
What has enabled Brazil to win so many football world championships (football for most of the world)?
Was it death? Maybe it was shooting?
It was everything. Brazil had the “complete package”, as they say. It was their passes, shots, dribbles, ball movements, plays and everything else that gave them an advantage over the other teams.
Your trade is no different.
Although there are dozens of factors that are part of your advantage, you don’t need to master them all at once. You don’t need to master all of them to start the odds in your favor.
It is best to master a set of factors and then slowly extend them to others to better define your benefit. Not only is it a natural progression, but it is also the best way to learn.
Have you heard the saying: “Jack from all offices, and lord of no one”?
If you try to master too many of these factors at once, you’re preparing to be good (not great) at many things. That’s not what we want.
They don’t do their best too hard.
But making an effort is what is needed, isn’t it?
Not exactly.
This may apply to other companies in life, but Forex is the exception. Successful Forex traders know that trying too hard is a sign that something is wrong. This is different than studying a lot. As a new Forex trader market research is strongly recommended.
For example, you can’t spend too much time learning the ins and outs of different currency pairs, or how to draw the most important levels. The more you try to learn about these topics, the better. However, trying to make a business strategy work will only lead to destructive behaviors, such as emotional trading. Similarly, it is too difficult to find trading opportunities a good way to lose money when setting up sub-parts. Jack Schwinger, the author of the Market Wizards series, said it best when he wrote: “good trading should be effortless.
Think in terms of risk
It is often the smallest things in life that generate the biggest improvements.
The concept of thinking in terms of risky money, as applied to Forex trading, is no exception. It is an extremely simple concept which can have a big impact on your journey to becoming a successful operator. I’ve never met a successful Forex trader who doesn’t calculate his risk before he placed a position. You may think that is an obvious statement, but a surprising number of traders don’t think about how much money is at risk before they open a trade. This is because you use any percentage to calculate the risk, such as one or two percent of your trade balance.
Think about your last trade for a moment. Did you define the exact amount at risk in dollars before trading? Or were you more focused on the number of pips and the percentage of your risk account?
The convenience of Forex position calculators has meant that we never again have to look at the dollar amount you risk. This convenience has caused a lot of carelessness.
Don’t get me wrong, I use the position size calculator in the link above for each operation.
They don’t need the money
There are not many guarantees on the Forex market. But one guarantee I can give is that no successful Forex trader trades today for the money he needs tomorrow.
In other words, trading Forex to earn a certain amount of money within a certain period of time. I’m not saying that you can’t generate most of your income from currency trading and that you can’t do it full-time. Such a statement would contradict my own experience.
What I’m saying is that no successful Forex trader needs a victory today to pay the electric bill tomorrow.
No trader can withstand that kind of pressure and be constantly profitable. Such an environment will only promote destructive emotions like fear and greed.
This topic brings us back to the idea that successful Forex traders do not do their best too hard.
If you need the money from the trade to pay your bills, you’ll probably feel pressured to win. If you feel pressured to win, you will certainly try too hard instead of letting the market do the heavy lifting.
They know when to walk away.
Of course, I mean taking a short break, not running away forever.
All successful Forex traders know when to retire and take a break. Those who are really passionate about Forex trading know how difficult it can sometimes be to walk away from the market. Nevertheless, it is necessary to become a successful trader.
It can be very difficult to walk away after an exchange. This is because our emotions increase and often bring out the best in us. But that is exactly what makes walking so beneficial right now.
After a profitable trade
After a victory, we feel good about ourselves and our business strategy. It feels like things are finally beginning to fall into place. At the moment it can be difficult to walk away. The natural trend after a winning trade is to continue the trade.
But that’s exactly why you have to leave.
Taking a break after a victory will calm your emotions. After a victory, you feel excited and proud of yourself, and you have every right to be that. But as you know, pride and excitement can put you in many troubles, and quickly. So the next time you have a winning surgery, knock yourself on the back and then leave. By the time you return to your trading desk, your emotions are under control and you are ready to approach the market with a neutral attitude.
They do not focus on victories and defeats.
You can no longer visit a Forex site today without the announcement of a strategy that promises a 98% profit rate.
Why is that? Is it because you need a high profit to become a successful Forex trader?
Not even close by!
They do it because it sells. People love winning, you can’t deny it. If you’ve ever played sports or seen your favorite team on TV, I’m sure you can identify yourself. Those behind the so-called strategy that produces an advertised 98% profit margin know this and make money with it. Nobody will be tempted to spend money if they see a headline that promises a 50% return. But what if it’s a strategy with an adequate risk-reward ratio of $300 for every $100 risk?
With a 50% profit rate, it is a 20% profit on a $5,000 account over the course of 10 trades.
Successful Forex traders know it. It has been a while since they realized that it’s not about winning a high percentage of the time. It’s about maximizing the amount of money you earn and minimizing the amount of money you lose on losers.
They never gave up.
Although this is the last one on the list, it is by far the most important thing for your success as an operator.
Over the years I have discovered that many people, including Forex traders, lose sight of this simple fact. The only way you don’t succeed in becoming a successful Forex trader is if you give up. This sounds obvious, but I’m amazed at how often I have perseverance and courage from the list of reasons why a particular trader was successful.
You can’t fail if you don’t stop.
That brings us back to the first part of this post where I mentioned passion. You can’t expect to have Forex success already.
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