It is not actually a goal to start something with the intention of failing and no Forex trader deliberately sets out to fail. So how do you ensure you are successful? The $100 question!
The internet is filled with tips, guidelines and training courses, which can be slightly overwhelming for new traders. Like any new profession, there is a learning curve while you get to grips with jargon, expectations and how the markets work. You need to be aware that it can take time to learn all you need to know. To be a success, you have to put the work in, as Forex trading is not a ‘get rich quick’ scheme and requires discipline and focus.
How Do People Become Successful Traders?
1. They Plan
You cannot work in Forex trading without a trading strategy, plus a trading journal that reviews decisions is integral to a successful plan. A plan of how you are going to achieve your personal goals is also essential, deciding what they are and the way to reach them is the way forward.
2. They Don’t Procrastinate
They get on with it! Daydreaming and planning are part of the process of achieving your goals, but action is also required. The maxim ‘never put off until tomorrow what you can do today’ works well for FX traders!
3. They Set Achievable Goals
Focus on goals that are set within an achievable time frame. No messing about with multiple options, employ a structured approach to achieve your end goals.
4. They Take Risks
This is about being willing to fail sometimes. Successful people put in the effort to get where they are going and are not afraid of failure. Fear creates a hesitancy that can cripple any plans or strategies. Calculated risks are what Forex is about, and learning from the process of failure is an excellent mindset to develop.
5. They Read, Read & Read!
Build this habit into your daily routine, broaden your knowledge, keep up to date with change, train your brain! Successful people know the value of learning from others experiences.
Successful Forex Traders Also Have:
- Discipline – necessary to recognise when a trade is going wrong and take action to minimise losses.
- Courage – to be different, a willingness to think outside the box, and to see losses as a chance to learn.
- Acumen – developing the insight to realise what shapes the market.
The list can go on. Understanding yourself and the profession you are entering is a vital component of successful traders around the globe. Spend some time exploring the careers of people like George Soros, who once told reporters ‘I’m rich because I know when I am wrong’, or his protegee Stanley Druckenmiller who is quoted as saying ‘there are a lot of shoes on the shelf; wear only the ones that fit.’ He describes his trading philosophy as preserving his capital with his long term plans and aggressively pursuing profits when trades are going well.
To become a successful Forex trader takes time and effort. Be prepared to not just learn about the markets and analysis tools, but to look at yourself, and do not be afraid to develop those traits that enhance your trading.