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What are qualities of a successful forex trader?

 

 

We will talk in this topic about one very interesting factor, without which successful Forex trading is reduced to almost zero - this is the psychology of a trader. Let's consider the main mistakes and aspects in the psychological preparation of a beginner market participant, as well as what basic qualities characterize successful Forex traders.

Surely for most people, the first acquaintance with the Forex market leaves the impression that this is some kind of game. Although in fact this opinion is erroneous. For a successful career as a trader, a thorough study of the basics of Forex and its laws is necessary. Indeed, for beginners in this field, there is not only a huge number of opportunities, but also, accordingly, many dangers and stress traps. Since the psychology of a trader, especially a beginner, sees more opportunities, but the main enemy for a beginner trader is himself.

 

According to statistics and practice, profitable Forex trading directly depends on the psychology of the trader himself, namely: how he deals with stress, how he makes trading decisions, how disciplined he is, what mood he trades with, etc.

The harmony of all these emotions just shows the general picture of the psychology of a forex trader. It is the psychology of a trader that gives an answer to the question: "Why do traders, trading the same strategy, show different results (some profits and others losses)?"

The answer is obvious, all people are different, and they control their psychological state in different ways. As a consequence of this, psychology makes trading individual for each trader.

 

Novice participants, when they come to the Forex market, pay more attention to technical information. In the beginning, they study various indicators, chart patterns and Price Action patterns, trading strategies, and so on. But at the same time, they do not pay attention to such super important issues as risk management, money management, the rules of the trader's discipline and what the psychology of Forex trading is.

The main mistake of a forex trader is both a low level of knowledge (based more on intuition) and too high (re-read, mess in the head and when trading). It can also be added that every successful professional in the Forex market was once a beginner too. Therefore, everything will work out if you study, analyze and earn!

 

One of the most important aspects of trading is psychological preparation for trading in the foreign exchange market. All successful forex traders use special training techniques. After all, the psychology of a trader today is practically the most basic problem, which not everyone can cope with.

Everything seems to be simple - I bought at the minimum, sold at the maximum, then took and put a tidy sum of money in my pocket. However, this is not the case. The main task of a successful market participant is to reduce losses and find the exact trading system that will allow him to earn more than to lose.

 

There are many books from well-known and successful traders in which the authors try to describe the advantages of certain techniques and tools for Forex trading, and also make a statement about making a lot of money practically without leaving home. Many magazines also describe the trades nicely and neatly. At this point, you say to yourself:

“I can too, I am ready and I will be a successful trader. I use my savings and turn them into millions in three days. "

In general, novice participants are trying to instantly make their millions and heal beautifully and happily.

You want to download (or buy!) The latest super profitable version of the trading system and not waste time on demo trading. This is a mistake! Indeed, in any business, training and sober calculation are necessary.

 

This psychology of novice traders is an illusion of a beautiful life almost instantly. But this is not the case. The reality is that in the trading markets it is quite difficult to make transactions with constant profit. We can say that almost 90% of traders lose money in trading. Therefore, on Forex you need to gradually prepare yourself, both psychologically and technically. This can be compared to training in a gym, in which a person goes regularly, eats right, pumps muscles according to a certain program, and only after a certain period does this give him the desired result.

The situation is identical in the Forex market, in addition to the acquired technical skills, you must also train yourself psychologically, develop self-confidence, a positive attitude in trading (aimed at a profitable result), be able to control your emotions, observe discipline and responsibility. As a result of this hard work, over time, you can succeed and become a successful forex trader.

 

Your success will not depend on trading systems because the best systems are a by-product of the confidence of a successful trader. You must first strive to develop a reliable trading approach. Take care of strict risk control and proper capital management (in order not to drain your deposit). For a successful trader, discipline is always important to be able to manage yourself and your trades. Most of the novice market participants drop out only because of the inability to control themselves.

Also, in many ways, the success of a trader depends on the psychological reaction to events on the stock exchange and the ability to cope with it, especially if fear and greed awaken.

It is work on yourself, overcoming difficulties and discipline - these are the basic principles of a successful trader. It is they who will help you in Forex trading and become the main factors in making instant correct decisions. Still do not fall into euphoria or despondency with losses and profits. Many people try to find answers on the side, although all the answers are in them!

 

 

 

 

Published on: 9/17/20, 12:03 AM