Forex Secret Tips #11 -- Successful Forex Traders Do These

[أبو سهم]

What differentiates successful Forex traders from the rest of the pack? Why is it that only a mere 5% really succeed in Forex trading? How did these traders do it? Even as all successful Forex traders have their proven Forex trading strategies and systems to call and manage their Forex trades, they know there is one more important thing to do: focus on improving themselves.

Because the trader is the ultimate resource that can act to deliver the desired Forex trading results, he or she must make certain this resource is primed and efficient to do its best at Forex trading. As such, successful Forex traders pay utmost attention to the points listed below which elucidate how they go about their Forex trading.

** Treat Trading Like A Business
Top Forex traders know that trading is a serious business and they treat it with such importance by bearing in mind key factors that affect all businesses. From the Forex trading perspective, these factors include: formulating a Forex trading plan; starting out with an suitable trading account size; knowing the various costs of trading; sustaining and growing the Forex trading account; and acquiring the right Forex trading knowledge, skills and equipment.

** Keep The Ego In Check
Trading mistakes can arise from emotional responses directly linked to one's ego. A Forex trader that needs to be right will let the ego override and inflict ruin to his/her Forex trading account, always trying to command the market which he/she denies cannot be controlled. Being egoistic also means not acknowleding one's trading mistakes and therefore not learning from them. For example, the ego will egg the Forex trader on to hold a losing trade instead of taking the correct action of cutting loss at the appropriate time.

** Be Disciplined In Every Trade
The item that directly affects the Forex trading account bottom line is trading discipline. The serious Forex trader follows his/her trading plan to the letter, and adheres to it as much as humanly possible (Note: even successful traders make mistakes). Trading discipline includes protecting trading capital and sensibly allocating risk per trade; only taking trades that meet risk/reward parameters and set up correctly; staying on the sidelines at all other times and not forcing a trade; cutting losses quickly via pre-determined stop loss levels; letting a good trade run but protecting a winner from turning into a loser. In essence, being disciplined allows the successful Forex trader to show profits consistently and severely limit losses should any trading period turn out to be a rough ride.

** Protect Trading Capital
The serious Forex trader regards his/her trading money very seriously, as it is what enables trading to be done. Additionally, it is also the objective of Forex trading: make winning trades to grow the money. Thus, the successful Forex trader will protect his/her trading capital zealously, ensuring that risk per trade is controlled so that losers only erode the trading account, not chew a hole in it. This assures the Forex trader that his/her trading business can continue, today, tomorrow and into the future.