These are a few essential qualities you need to have as a forex trader, you probably won’t posses them in the context of forex trading even though you may well have them in the usual business environment.
The Essential Forex Trader Qualities.
Discipline and patience are the utmost skills you need for forex trading, it doesn’t matter how much knowledge you have and how much understanding, if you don’t posses the ability to implement that knowledge and understanding you will fail. The first problem you encounter is what to be disciplined and patient about, the forex market is an ever evolving beast and what might be valid today probably won’t be valid tomorrow, so just being told to be patient is not much help. To nurture these skills you need to set a good foundation, and that means taking things step by step, at the start it’s such a temptation to learn everything and implement everything, but by doing this you won’t ever have a reference point to start from. If you try working with support and resistance, indicators, Fibonacci tools and complex money management plans then it will only serve to confuse. Start trading with the most basic of strategies, just use one type of entry and take a fixed amount of profit and a fixed amount of loss, it may even be an effective way for you to make profits over the long term. But keeping it as simple as possible especially at the start of your trading career will serve as a good foundation for the future and a solid basis for your trading decisions.
The Patience Of A Forex Trader.
Not losing money is the key to forex profits rather than making it, at times it can be quite easy to make money from forex trading, but it is far easier to lose it when the market is tough, this is where patience comes in. Depending on your strategy and with even a scalping strategy there will be days where you need to stay out of the market, you may be looking at only scalping 20 – 30 PIPS, but even at this short term level you may well find yourself in a market that it’s best to stay out of for days. This is the hardest part of trading, just waiting until the market becomes clearer so that you have the higher probability trades and avoiding the ones that will just whipsaw and take you out at your stop loss.