Based on the recent study, we can assume more that ninety percent of retail Forex traders fail. According to some sources, failure rates as high as 97% are possible. Regardless of the exact figure, you may have dealt with thousands of merchants throughout the years. We have all heard the standard justifications: expertise, discipline, and strategy. While those may be important considerations, there are also some less visible differences.
Successful Forex traders think differently than the rest of the traders. They do not care if they have a high win percentage or trade every day regardless of market conditions. Suppose we would like to clarify how we will define success in this essay before getting into the attributes. A successful Forex trader’s story must feature continuous earnings. However, there is more to success in any venture than mere money. It is also about the happiness and excitement it brings to your life.
1. They embrace losing trades
There is not a single Forex trader who has not lost money. However, there is a significant distinction between how a novice trader loses and how the top Forex traders lose. A loss is viewed as a terrible thing by most newcomers to the Forex market. It is a manner of indicating that they have made a mistake.
And it isn’t very nice to do anything incorrectly. That is, at least, what we have come to believe throughout our lives. A successful trader, on the contrary, does not consider a loss to be a “bad” thing. It is also not something that happened to you as a result of the market. The Forex market has no idea where you joined the market or where your stop-loss order is. The market, unlike you, is always neutral. When you lose, you must reflect on what you could have done differently.
2. They Make Use of Price Movement
Every successful Forex trader uses price action, has encountered in some fashion. This does not imply that they use price action in the same way you do, but it means that they incorporate it into their trading strategy somehow.
To become the most significant Forex trader you can be, you must have a basic understanding of where buying and selling orders are positioned in the market. It can help any trading strategy by highlighting potential entry points as well as profit targets. For more explanation visit the official site of Saxo and enhance your knowledge on price action trading skills.
3. They Have a Well-Defined strategy
It is no surprise that so many traders fail to understand what an edge is and establish their own. It is determined by the time you trade, the price action tactics you employ, the critical levels you have identified, your risk-to-reward ratio, and other considerations. It contains your pre-and post-trading routines as well.
4. They always trade in relax way
This may be true in other areas of life, but Forex is an exception. Excessive effort is an indication that something is not right, according to successful Forex traders. You cannot spend too much time learning the ins and outs of different currency combinations or how to draw critical levels, for example. The more you strive to understand those specific issues, the better.
5. They Have a Risk-Averse Mindset
The principle of thinking in terms of money risked is no exception when it comes to Forex trading. It’s a straightforward notion that can significantly impact your quest to become a top Forex trader. You probably think that statement is self-evident, yet a surprising proportion of traders do not consider the amount of money at stake before entering a trade. This is since they evaluate risk using an arbitrary percentage, such as one or two percent of their trading account balance. Consider your most recent trade for a moment.
6. They Never Quit
Although it is the last item on the list, it is the most critical to your trading success. That leads us back to the first section of this article, discussing the importance of passion. You cannot expect to succeed in Forex if you quit, and you can’t expect to stick it out if you don’t enjoy trading. To be a successful trader, you must have a strong drive to succeed. You trade because you want it, not because you wish to make more money. Trading is, without a doubt, the worst way to generate money in the world.
Because there is no finish line, embrace the journey. Even those who have consistently made money have more to learn. Anything less would be a waste of time.