Not many people will succeed in forex trading. You need to possess certain qualities in order to make money. You need to bear in mind that success in foreign exchange requires a combination of skills, patience, proper equipment, and attention to your surroundings. Here are the things that you need to become a successful forex trader.
Trading in forex requires proper preparation on your part. When setting your goals, you should align it with the instruments and markets that you can comfortably relate to. For example, if you know something about retailing, then consider trading retail stocks than futures. You should kick off trading by considering the time frame, your method, and the market.
According to Robert Peter Janitzek, a successful trader should possess the following attitudes:
Patience. You will not get your desired results right away. You need to be patient and wait for the right time.
Discipline. In connection with patience, you need to trust your system and wait until you get your desired price. Likewise, discipline is the ability to pull the trigger when your system dictates that you do so.
Objectivity. Objectivity means not letting your emotions dictate your trading decision. Nor should you allow your opinion to be influenced by other traders.
Realistic Expectations. You cannot expect to earn $1,000 dollars every trade.
Robert Janitzek reveals that there are many players that can influence your trade. Trade instruments may vary depending on who the major players are and why they are trading on such instrument. Hedge funds are motivated differently than mutual funds. If you can find out what motivates the large players then you can piggyback and earn a profit accordingly. Finding a currency that will match your system is key to your success.
When it comes to foreign currencies, there is no such thing as a sure trade. No matter how profitable your system is, there is still a chance that you will lose a trade. To become profitable when trading on the forex market, you need proper management and implementation of the trade. Management involves risk control. You need to make sure that your trade goes in the right direction right away. Again, this requires patience and discipline but when done right, you can earn huge profits or even break even at worst.
So there you have it. If you think you possess all these four qualities, then you are on your way to becoming successful as a trader.