10 facts that NO Institution wants you to know!
Forex trading is considered by many as one of the biggest financial markets today. The fast-paced industry sees traders enjoying vast liquidity using hundreds of instruments having an opportunity for many to make money when deemed possible.
Despite having a large opportunity in the market, there some however who go into trading but ending up not being able to make a profit. One could suspect they have either not learn or grasped the concept of trading.
Ausforex today will share with you 10 habits from some of our success stories we have heard from our clients.
We are all humans after all, and having an urge to jump in and out when the market is not in your favor is not wrong. The fear is real when losing an investment and that's a major factor separating the Pro from amateur traders.
If a trader makes a move and closes the currency pre-maturely the currency pair might continue to move in a profitable direction resulting in money left on the table. Mentally strong traders trust their instincts and make no choices from their fears. We believe that traders must put trust in their work, whereas fear of losing makes
Trading should be based on trust that the decision will work out, whereas fear of losing money jeopardizing this trust.
Success is measured from the strategy you had started out with. Did it work, did you stick with it?
No one goes to war without having a strategy to win the battle right. Succesful traders will almost always have a master plan in mind.
They rely on their strategies involving diversification, money management, risk assessment, market trends and so forth. It is a common trend among new traders to neglect strategy planning.
No one ever won by making too many decisions, the reality is that understanding a lot of decision making does not equal great profit.
Experience traders never open a position without a reason as they do not gamble on trades that they are not familiar with or a behavior of a certain currency pair.
Read more: Develop the perfect game plan
3) Basic fundamentals
Trading is built on information, a well-informed trader understands whats happening in the market thus able to make effective decisions to match specific currency pairs.
Having a complete insight into the historical data of a currency pair along with its trend during the trading period. A good trader is always updated with information such as Fibonacci trading strategies and how they can take advantage of it in the market.
Effective traders understand that they are at risk of losing their money, what separates them from the normal is that they are able to asses calculated risk. New traders have blindsided that forex trading is a quick money scheme all while ignoring the fact that it requires high levels of discipline and dedication.
A secret to their success is that they don't risk all their investment in a single trade and never abuse the leverage in their system. In fact, they would rather follow the principle of compound interest over taking an unreasonable risk.
“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble."
Disciplined traders are often successful ones, having studied and learned when to trade and when not to. It's a common mistake for traders to often invest capital when they should have held back. Their success can be calculated back to the key timing of long-term trading, knowing when to hold back and when to invest.
6) Mistakes happen
There is no success story without failure, they just avoid making the same mistake twice. Learn from every wrong trading decision you have made in the past and pull off with the stronger strategy every day. Over time this hard work and effort will pay off as making those mistakes lead to be a highly effective successful trader.
Everyone started off as an amateur, they may be foolish at first but their persistence is what drove them to success. The biggest lie in trading is that you will win every day, often times they lose but they chose not to dwell on it. Rather get back up and come home stronger because a successful trader looks backs on their losing days to learn from mistakes they have made.
8) Being focused
Having focus is a key to success, often times new trades lose focus during trading. Being driven by emotions and other factors is what separates you from being an effective decision maker to a bad one.
9) Money management
A hard truth to swallow is money management those who are successful know how important it is to capitalize on this. They diversify when trading and do not risk all their capital in one single decision. Often being disciplined with their capital as their success depends on proper capital management.
Never stop learning, constantly feed yourself with study material, blogs as well as listening to other success stories. Don't be afraid to learn from their winning strategies and adapt them. You are only as sharp as the sword you sharpen. Try out new trading strategies in accordance with their principles, but most of all are you willing to learn?
We have just learned 10 effective habits of effective traders, this is what separates success from failure. The saying goes that it is always easier to learn than to follow.
