Forex
Secret Tips No 11 - Successful Forex Traders Do These
What separates successful Forex traders from the rest of the
pack? Why is it that only a mere 5% really make it in Forex trading? How did
these traders do it? While all successful Forex traders have their proven Forex
trading strategies and systems to call and manage their trades, they know there
is one more important thing to do: focus on improving themselves.
Because the trader is the ultimate resource that can act to
produce the desired trading results, he or she must ensure this resource is
primed and efficient to perform its best at Forex trading. As such, successful
Forex traders pay great attention to the points listed below which elucidate
how they go about their Forex pursuit.
Treat Trading Like A Business
Top Forex traders know that trading is a serious business and
they accord it such importance by considering key factors that affect all
businesses. From the Forex trading perspective, these factors include: writing
a Forex trading plan; starting out with an appropriate trading account size;
knowing the various costs of trading; sustaining and growing the Forex account;
and acquiring the right Forex trading knowledge, skills and equipment.
Keep The Ego In Check
Trading mistakes can arise from emotional responses directly
linked to one's ego. A Forex trader that needs to be right will let the ego
prevail and inflict ruin to his/her Forex account, always trying to will the
market which he/she denies cannot be controlled. Being egoistic also means not
acknowledging one's trading mistakes and therefore not learning from them. For
example, the ego will egg the Forex trader on to hold a losing trade instead of
taking the correct action of cutting loss at the appropriate time.
Be Disciplined In Every Trade
The item that directly affects the Forex trading account bottom
line is trading discipline. The serious Forex trader follows his/her trading
plan to the letter, and adheres to it as much as humanly possible (Note: even
successful traders make mistakes). Trading discipline includes protecting
trading capital and sensibly allocating risk per trade; only taking trades that
satisfy risk/reward parameters and set up correctly; staying on the sidelines
at all other times and not forcing a trade; cutting losses quickly via
pre-determined stop loss levels; letting a good trade ride but protecting a
winner from turning into a loser. In essence, being disciplined allows the
successful Forex trader to show profits consistently and rein in losses should
any trading period turn out to be a rough ride.
Protect Trading Capital
The serious Forex trader treats his/her trading money very
seriously, as it is what enables trading to be done. Additionally, it is also
the objective of Forex trading: make winning trades to grow the money. Thus,
the successful Forex trader will guard his/her capital zealously, ensuring that
risk per trade is controlled so that losers only erode the Forex account, not
chew a hole in it. This assures the Forex trader that his/her Forex business
can continue, today, tomorrow and into the future.
Don't Marry Your Trades
The serious Forex trader knows that a single trade alone does
not determine his/her trading success. He/she is fully aware that any trade
could turn out to be a loser and therefore is conscious in removing any
emotional attachment to every trade. While staying disciplined entails waiting
for the good trade entries, this wait and eventual trade entry do not compel
the successful trader to think that he/she must be right in taking that trade.
As such, should the market go against the trader and he/she sees prices
approaching the stop loss level, the trader fully accepts that losing is a real
possibility and does not rationalize further. Contrast this behavior to a
novice trader who will often be tempted to move the stop loss further out so as
to let the trade have "more room" -- such a trader feels the need to
be right and doesn't know how to walk away from a loser.
Be Realistic, Practical And Persevere
Being realistic is what separates the men from the boys when it
comes to Forex trading. The successful Forex trader does not have a
get-rich-quick mentality and knows it is hard work; thus he/she treats trading
as a business and has the mental fortitude to stay in the game for as long as
it takes. Perseverance is a key asset, reinforced by the necessary trading
discipline imposed in the trading plan and the personal belief that it is
possible to succeed in Forex trading. At the same time, the serious Forex
trader knows he/she is psychologically guided by his upbringing, attitudes and
experiences regarding money and success, but is practical by admitting these
limitations and working to break such self-defeating barriers. Pursuing the
right Forex education and learning from other successful traders are good
solutions to the problem.
Know Yourself And Let Others Help You
The successful Forex trader knows his/her strengths and
weaknesses when it comes to trading, and is not shy to ask for help. While
knowing there is no shortcut to success, the trader will often pursue education
from the best mentors so as to acquire the right knowledge and learn the right
skills essential to their progress towards successful Forex trading. As part of
the trading plan, the serious Forex trader keeps a trading journal and reviews
this daily to learn from past mistakes and internalize winning trade
executions. The trading journal can also be used by the mentor to help the
Forex trader make specific and personal improvements.
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Article Source: http://EzineArticles.com/expert/Matthew_Huttons/808723