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Things Successful Forex Traders Do That You Probably Ignored

Discussion in 'Beginners Bootcamp' started by NicholasM, Feb 17, 2015.

  1. NicholasM

    NicholasM Corporal

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    First:

    Successful traders never put your eggs in one basket however promising it might look; ignore this, and you could be out of the game before you know it. Sometimes optimism fails us, we feel that we have a strong conviction about a particular trade and then put too much towards that trade well above our risk threshold (i.e 1%, 2%, 3%, 4%, 5% etc).

    when you set up your risk per trade threshold, it is imperative that you follow your rules of engagement in the Forex market. Stepping outside of any of them could be the beginning of your downfall.
     
  2. NicholasM

    NicholasM Corporal

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    Second:
    Continuous Learning process. We all talk of experts and pros etceteras, but successful Forex Traders will tell you that this market has no absolute experts. If it had, then that person would be striking wins in all his/her trades.

    However, one thing that keeps successful traders delivering trade after trade is a continuous learning process. The openness to new trading ideas and acceptance of the changing market environment means that we should always be ready to learn something new.
     
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  3. NicholasM

    NicholasM Corporal

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    Third:
    You must go in with your eyes open: Successful Forex traders do not just wake up one morning and decide to do day trading. They plan, come up with a strategy that they refer to from time to time to make sure that they are within their trading plan and geared towards your goal. Therefore, it is very common that every successful trader have strategy that keeps them turning profits.

    And by the way, combining a set of indicators to make trading decisions is not a strategy. Strategy begins from the percentage of money you intent to trade with from your overall income as well as the reinvestment rate and an escape plan among various trading techniques. It is a complete guide.
     
  4. downtrend

    downtrend Sergeant

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    A great reply, proper planning is extremely necessary, Good trader plan the week ahead, they know important levels to trade and trending pairs to look for setups. Just don't make blind entries.
     
  5. stephane

    stephane Private, 1st Class

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    I think this is even the only one thing that succesful forex traders have in common. They all plan the trade and trade the plan.
     
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  6. NicholasM

    NicholasM Corporal

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    Fourth
    Keeping Good records. Some people may take it for granted but to be a successful trader, you need to monitor your tactics and test their results. This exercise aligns well with the overall strategy by making sure that you remain well within your targets, else you may have to alter your strategy. Keeping records of your trading activity can also act as a good motivation when things are not going well, i.e you can refer to a period when you had continuous success, which could provide you with one or two tricks that could help you turn things around again.
     
  7. NicholasM

    NicholasM Corporal

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    Fifth

    Successful Forex Traders are not just about trading. They have a life. While keeping a close eye on your trades could be crucial in avoiding unforeseen hits. It is equally important that sometimes you take a leave and get away from you computer or whatever platform you use. This does not just help you relax your mind, but it also gives you the opportunity to reflect on life and enjoy your money as well. In fact, 9/10 you'll probably come back to your trading station with new ideas and insights. Also you get to mingle with people and learn from them. So yes, it is good to have a life outside of trading.
     
  8. NicholasM

    NicholasM Corporal

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    Six:

    They think about losses as much as they think about profits: Any Forex trader who gets to the market thinking of only profits is bound to fail and the reason is simple. To be successful, you have to plan for your losses as well. Know exactly what to do when you get hit hard, and your strategy to calming things down and getting back on the game.

    Sometimes when you do not prepare for losses, you are likely to make rushed decisions that could result in more losses. i.e Closing all your positions picking up small profits instead of waiting for optimal gains and also trying to cut the level of losses on losing trades instead of waiting for the price to rebound. Sometimes it is easy to ditch your strategy even without knowing.

    So, when you plan, plan for losses as well so that you stay calm when things go south.
     
  9. OlafYom

    OlafYom Banned spammer for FreshForex

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    I guess it's important to trade with the right frame of the mind as well.
     
  10. pro4Xtrader

    pro4Xtrader Recruit

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    A successful trader is:

    Patient
    Disciplined
    Well capitalized
    Has clear rules to act on any market scenario
     

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