Signs you have what it takes to be a Forex Trader
There are thousands of training websites out there teaching their readers about the Forex market and providing them the tools required to become a Forex trader. They provide lots of information that might give the impression you can easily become a successful Forex trader by simply learning all the material out there. Unfortunately, while it helps it is not that easy to become a profitable forex trader.
Some may say that you need to be born with the traits to be a successful trader. You need to love working with mathematical equations all the time and be excellent at analysing every aspect of the markets. But these 2 virtues are still not enough.
A Forex trader is a combination of many things at the same time. It is a person that enjoys adventure. In their free time over the weekends (when the markets are closed) they might like to go climbing, hiking or do other sports to remain active. They get excited to see movement in the markets. They look forward to speeches from the central bankers’ even though quite often that information will not be used directly for trading. They love watching the candlesticks moving up and down. They also enjoy the fact that they didn’t decide to place a trade because they don’t know the true outcome or what will happen when the market settles.
Usually, Forex traders measure everything in pips. The success of a day is counted in pips and not in money. If they produce a specific number of pips that day they are satisfied. Everything for them is measurable.
They are well centred emotionally. Forex traders need to maintain discipline when trading and because of this emotional stability is crucial. Trading performance relies heavily in peace of mind and you will come across traders that meditate a lot to keep this balance.
Forex traders often try to digest as much information as possible. Let’s say you are about to trade in a specific pair and the goal is to enter and exit the market within a day. As a Forex trader you should have analysed everything that is related to the specific pair you are about to trade. You should know information about the currency pairs inside out, the news releases and the history between the currencies. You are likely to be able to recollect the chart data of the pair you are currently trading; in fact you probably know it so well you would be able to draw it with your eyes closed!
Forex traders have mastered how to handle fear. All traders have caught themselves being afraid to trade simply because they are risking their hard earned money. Successful Forex traders on the other hand have become near fearless to loss and often work in an emotionless state. They know the risks and are willing to place trades because they are confident of their trading strategy, know how to handle failure and are not afraid to come back for more.
Forex traders only place trades when their strategy tell them it is right to do so and not because they feel compelled to trade. Successful traders often go days without placing a single trade because the opportunity doesn’t present itself. They will never open a trade just for the fun of it and often participate in other activities to fulfil themselves.
Successful Forex traders don’t always follow the crowd. They remain loyal to their strategy even when other traders are doing the opposite and even when the market indicates something else. They are never intimidated by this and will never have second thoughts about their decisions, even when they proven are wrong.
They always test and they never trust anyone. They learn to read between the lines and the trader will never take anything for granted. They are always prepared for the worst. Black Thursday for successful traders was a surprise when it happened but it wasn’t something they hadn’t anticipated.
Forex traders learn new things all the time. Let’s imagine that a trader is following a specific strategy that was analysed thoroughly and happened to prove very successful. It doesn’t mean that the trader will never adjust his strategy according to new conditions that exist in the market. The markets are changing constantly and successful traders will embrace those changes and not fear them.