What makes successful traders different from the others? There are publications that show as high as 95% failure rate in trading.
You may already have heard of the usual factors that affect success like discipline, experience and strategy. While those may be true, there are also other factors which are less obvious.
The bottom line is, those who are successful in forex trading think differently from all others. They are not chasing after the high rate of winning or trading everyday even though the market conditions are not good.
There are several attributes that define success. Any stories may always include consistent earnings. Almost everyone will agree that most of the traders will use profits to benchmark the achievement of another. Yet, success in any other endeavor is not just about money. It is more than that, it is about the passion and joy it gives to your life.
It is your passion not for money, but in trading, which will drive you through the tough times in the business. Below are the attributes that successful forex traders share.
They Do Not Lose
Don’t get it wrong. No forex trader experiences success without any losses. Yet, there is a distinctive difference between how the newbies and the best traders lose. It is their mindset.
Most of the forex newbies view losses as bad things. They take it as a signal that they did wrong moves. On the other hand, successful traders don’t see loss as a bad thing. It is actually a moment of reflection to where you can do better.
Successful traders have a winning mindset which tells them that loss is simply a feedback. It is the market’s way to disprove a trade setup. Losses can be the powerful way for every starting trader to learn. Keep in mind that a closed trade which ended up a loss can also be a right decision.
They Utilize Price Action
Price action performs a major part in any trading strategy. It serves as the depiction of the psychology within the financial market. It gives some insights to the minds of the traders. To become the best in forex trading, it is critical that you have an idea where buy and sell orders are found in the markets.
Forex trading without using price action in any form is like driving a car with just one eye opened. It can be done, yet it is recommended.
They Have A Specified Trading Edge
There is a lot in the internet about the necessity for a trader to improve an edge. So what’s the trading edge and why is it that important? An edge is the whole thing about the way you perform trading that can help set the odds on your advantage. It is the combination of the risk-reward ratio, the time frame, identified key levels and the price action techniques that you use.
Though there may be dozens of aspects that will set up your edge, remember that you don’t have to master all of them in just a snap. It is always better to master one set of the factors first before slowly expanding them to define your edge.
These are just a very few tips on becoming a successful trader. The key takeaway here is that there is no secret or magic to become successful in trading. you just have to be prepared to put more effort and time, just as the ones before you did. Embrace your trading journey because there will be no finish line. Achieving consistent earnings doesn’t mean learning is over. It must be continuous. Anything you do that is less than the best will not be worthwhile.