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Published On: Tue, Dec 4th, 2012

Attributes of a Successful Forex Trader

Expert consensus states that a list of important features that many successful traders possess is as follows:

1.  Commitment

2.  Patience

3.  Perseverance

4.  Competence

5.  Self-control

Let us now study these qualities in turn so that we can define why they are so important to trading.

1.   Commitment

Committing to some form of Forex education should be an important aspect of your trading methodology. Developing a desire to learn as much as you can will place you in a good position to launch a profitable trading career. When doing so, remember that there is a large quantity of free information that is available on the internet. A sound methodology will help you to develop this attribute. You just need to master its concepts in order to enhance your commitment to the necessary levels.

2.   Patience

These days, many people do not take the time to acquire the level of patience that is essential for success at most aspects of human activities. They tend to be too focused on “instant gratification.” In particular, many Forex traders squander their deposits because they do not wait until the market conditions improve. They allow their emotional instincts to prevail over careful analysis of fundamental and technical considerations. For example, many cases occur when Forex traders rush to sell after any bad news has been reported only to regret their decisions if such information turns out to be unfounded.

If you take your time and study an easy-to-follow forex methodology then you will soon develop your levels of patience in hardly any time at all so that you can approach your trading professionally.

3.   Perseverance

Forex trading is not ideal for those who do not possess perseverance. This is simply because Forex trading should be viewed as a business and that profits may be slow to acquire if traders do not utilize the adequate levels of perseverance blended with competence and patience.

For instance, Forex traders need to possess perseverance in order to develop trading strategies that will allow their profits to run even during volatile market conditions. However, if you perfect the art of implementing a powerful Forex methodology then you will find that you can quickly conquer this aspect of trading.

4.   Competence

Needless to say, you will not acquire success at any human endeavor if you do not master the skills involved. The first step of any Forex methodology specifically focuses on this important aspect of trading.

Consequently, if you study the components of a proven methodology then you will easily perfect the techniques required to satisfy this requirement. In addition, if you merge your new knowledge with the above attributes of successful Forex traders then you will soon find yourself on the road to success.

5.   Self-Control

Learning to control your emotions is a big step to achieve if you want to trade Forex profitably. For example, you cannot cave in to greed which can be quite an easy trap to fall into. This is because the large daily turnover that Forex possesses causes many traders to adopt a gung-ho approach causing them to gamble as opposed to utilizing professional trading techniques.

However, you can quite readily gain the levels of self-control that are required by simply studying and then practicing a powerful Forex methodology. This is because they have been specifically designed to help traders control their emotions allowing them to trade in a business-like fashion.

After devising or attaining a new Forex strategy or tool, most novices try to trade it straight away. However, this can be a mistake. Instead, you should use a proven methodology to evaluate the performance of your new strategy. In particular, you need to gain a thorough understanding of your new trading product and exactly how its main components function. In fact, you should learn it so well that you can recite all its key parameters from memory.

Next you need to observe your strategy or tool in action. Basically, you can perform this task by undertaking a thorough study of the historical trading results for your chosen currency pair and time frame. You should go back in time as far as your trading platform will allow you. Finally, you should trade your strategy using a demo account and record the results and relevant details of all your trades. If you learn and practice using a methodology to implement a Forex strategy, then you will begin to experience the success that can produce consistent profits.

 

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.

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