|
 Download The Complete Guide To FOREX for FREE! |
Traits of Successful Forex Traders
Forex trading is not for everyone. There are a lot of variables to take into account, and there is always the risk of losing money. Some people just aren't cut out for it. If you are considering becoming a forex trader, you'll want to read this article carefully. It contains the traits that set successful traders apart from those who fail.
If you don't possess most or all of these qualities forex trading may not be for you:
Discipline. Successful traders formulate a trading system that works and stick with it. They don't try to trade "on the fly".
The ability to accept risk. Despite what many will tell you, forex trading is not without risk. You can lose money by trading, and you must be willing to accept this risk.
The ability to accept failure. Even the best traders in the world lose money on some of their trades. It's the nature of the beast. But the difference between them and average traders is that they don't focus on their failure. They accept it, learn from it, and move on.
Confidence. Successful traders have confidence in their knowledge and in their ability to make winning trades. They don't doubt or second-guess their trades.
The ability to accept being wrong. Hey, no one is perfect. You're going to make mistakes and there will be times when your analysis will be way off. Don't stubbornly stay in trades gone bad just because you refuse to admit being wrong. Cut your losses and look for the next opportunity to make it up.
Patience. Smart traders follow their system and wait for good opportunities to present themselves. It's not necessary to have positions open at all times. You may go a day or two without any trades being made. Don't trade just for the sake of trading. You'll jump into many more bad trades than good ones.
Knowing when to get out. The key to trading is not just knowing when to get in, you need to know when to get out. Many a trader has gotten greedy and stayed in a trade too long only to see their profits wiped out by a sudden downtrend. When your trading system tells you to get out, listen to it.
Know your financial limitations. Don't over-leverage yourself, and don't trade with money you need to pay your mortgage. If you do you'll risk ending up on the street. Only trade with money that you can live without. If this means starting small with only a few hundred dollars, so be it.
Recent Forex News
Forex Technical Analysis Reports (ActionForex.com)
Technical analysis reports from selected analysts around the world on forex market. Available in ActionForex.com
Chart Of The Day: USD/JPY
Coming into the New Year, price action on the key USD/JPY pair (a daily chart of which is shown) has made a very decisive break above a strong downtrend resistance line that has been in place since at least September 2008. In the process, the pair can now be considered...
Euro Expected to Form a Low Soon; British Pound Breakout Trade
I wrote yesterday that “the decline from the July 2008 high (1.6040) can be counted as a 5 wave drop (wave 5 is truncated). 5 waves down at this degree of trend indicate that the long term trend has changed and that a multi-year bear is underway.” The surge through...
The Pound Stalls As The Euro Tumbles: The DailyFX Analysts Find The Opportuni...
As the first full week of the New Year wears on, traders seem to be taking advantage of the influx of liquidity and volatility to turn the market back to trends. However, the high correlation through the the fourth quarter of 2008 seems to be breaking down with the european...
Elliott Wave - Dollar Index
The dollar index moved higher in trade this week, while the euro and gold were going lower, and the pound, cad and aussie were gaining. The index traded exactly in the territory that we mentioned yesterday, the 82.60-83.00 resistance area. If this price area does not push the $ index...
Daily Technical Strategist
A build up on Friday losses saw the pair cutting through the 1.3882/1.3900 area, its Sept 11'08 high/.618 Ret and the 1.3785 level, its Oct 09'08 high to close lower Monday at 1.3637.It was seen weakening sharply in early morning trading today opening up downside risk towards the 1.3298 level,...
Newsfeed display by CaRP
Forex Fundamental Analysis Reports (ActionForex.com)
Fundamental analysis reports from selected analysts around the world on forex market. Available in ActionForex.com
New York Session Recap
The buck gave up overnight gains in NY trading as a poor batch of US economic data and the FOMC meeting minutes dealt the market a fresh dose of reality. The ISM services index was the lone positive surprise, coming at a still dismal 40.6 in December after a paltry...
Stocks Rise As Fed Indicates 'Substantial" Risks To The Economy Exist
Stocks rose on Tuesday even after minutes from the Federal Reserve's Dec. 16 meeting showed that policy makers remained deeply concerned economic conditions, expressing the view that output would contract in 2009, unemployment would rise "significantly" into 2010 and that inflation could flirt with "uncomfortably low levels."
Currency Pair Overview
The currency market continued to buy dollars in the overnight session. Amazingly, the pound managed to post some small gains even though until now it has been sold at a strong pace, touching a record low both against the euro and the swissy, and a six year low against the...
Greenback Slumps on Soft Data
The dollar relinquished its recent gains versus the majors, tumbling by over four big figures against the pound to 1.4960. The economic data released earlier in the session was mixed, with durable goods, factory orders, pending home sales and non-manufacturing ISM reported in the Tuesday session.
Fed Sees 'Possibility Of A Prolonged Contraction'
The Federal Reserve released the minutes from the last monetary policy meeting over December 15th and 16th; and their observations were discouraging. Though the Federal Open Market Committee decided to lower the benchmark lending rate to encompass a range between zero and 0.25 percent (a record low under modern policy...
Newsfeed display by CaRP
Forex Technical Analysis Reports (ActionForex.com)
Technical analysis reports from selected analysts around the world on forex market. Available in ActionForex.com
Chart Of The Day: USD/JPY
Coming into the New Year, price action on the key USD/JPY pair (a daily chart of which is shown) has made a very decisive break above a strong downtrend resistance line that has been in place since at least September 2008. In the process, the pair can now be considered...
Euro Expected to Form a Low Soon; British Pound Breakout Trade
I wrote yesterday that “the decline from the July 2008 high (1.6040) can be counted as a 5 wave drop (wave 5 is truncated). 5 waves down at this degree of trend indicate that the long term trend has changed and that a multi-year bear is underway.” The surge through...
The Pound Stalls As The Euro Tumbles: The DailyFX Analysts Find The Opportuni...
As the first full week of the New Year wears on, traders seem to be taking advantage of the influx of liquidity and volatility to turn the market back to trends. However, the high correlation through the the fourth quarter of 2008 seems to be breaking down with the european...
Elliott Wave - Dollar Index
The dollar index moved higher in trade this week, while the euro and gold were going lower, and the pound, cad and aussie were gaining. The index traded exactly in the territory that we mentioned yesterday, the 82.60-83.00 resistance area. If this price area does not push the $ index...
Daily Technical Strategist
A build up on Friday losses saw the pair cutting through the 1.3882/1.3900 area, its Sept 11'08 high/.618 Ret and the 1.3785 level, its Oct 09'08 high to close lower Monday at 1.3637.It was seen weakening sharply in early morning trading today opening up downside risk towards the 1.3298 level,...
Newsfeed display by CaRP
Forex Fundamental Analysis Reports (ActionForex.com)
Fundamental analysis reports from selected analysts around the world on forex market. Available in ActionForex.com
New York Session Recap
The buck gave up overnight gains in NY trading as a poor batch of US economic data and the FOMC meeting minutes dealt the market a fresh dose of reality. The ISM services index was the lone positive surprise, coming at a still dismal 40.6 in December after a paltry...
Stocks Rise As Fed Indicates 'Substantial" Risks To The Economy Exist
Stocks rose on Tuesday even after minutes from the Federal Reserve's Dec. 16 meeting showed that policy makers remained deeply concerned economic conditions, expressing the view that output would contract in 2009, unemployment would rise "significantly" into 2010 and that inflation could flirt with "uncomfortably low levels."
Currency Pair Overview
The currency market continued to buy dollars in the overnight session. Amazingly, the pound managed to post some small gains even though until now it has been sold at a strong pace, touching a record low both against the euro and the swissy, and a six year low against the...
Greenback Slumps on Soft Data
The dollar relinquished its recent gains versus the majors, tumbling by over four big figures against the pound to 1.4960. The economic data released earlier in the session was mixed, with durable goods, factory orders, pending home sales and non-manufacturing ISM reported in the Tuesday session.
Fed Sees 'Possibility Of A Prolonged Contraction'
The Federal Reserve released the minutes from the last monetary policy meeting over December 15th and 16th; and their observations were discouraging. Though the Federal Open Market Committee decided to lower the benchmark lending rate to encompass a range between zero and 0.25 percent (a record low under modern policy...
Newsfeed display by CaRP