Becoming a forex trader is not an easy task as you need to have that risk taking ability and the sense of discipline to be working regularly on you trading account.
Successful traders who have made a fortune for themselves and their customers work differently than their peers who are not so successful in this dynamic trade. What are the factors that make a particular trader successful in this highly volatile field? Let's take a look
1) One needs to allocate and fix funds that are to be invested in the Forex market. This will define the maximum risk per trade apart from having a psychological advantage.
2) A plan about the way one is going to proceed whilst trading in the market has to be in place and of course the implementation part has to be superb.
3) YOu need to fix clearly your exit points and in each and every trade. Profit target and stop loss strategy can be followed and should be practiced religiously so that you don't make a blunder.
4) You have to be ready to accept risk every time you enter the market to trade in a particular set. Set your percentage of the total trade for the stops. The optimum percentage for stopping in pegged at 2% for a $10000 account.
5) Stick to the plan that you have devised for yourself and don't be tempted to deviate from it. Give at least two weeks to a particular strategy and check its viability in the long run.
6) Check for the probability of success in each trade that you are working on this will make you more oriented towards research which is of utmost importance in Forex trading.
7) As trading is a game of probability you must be ale to stop a particular trade after a series of losses.
8) Set up your expectation to realistic levels. People become rich overnight in this trade but for that you need to have those exceptional risk taking abilities or you need to have those exceptional trading traits that will surely make you a top trader.
9) Keep in mind that anything can happen in this trade. One can make a fortune overnight and ne can even loose everything overnight.
10) Keeping an eye on the future and guessing what's going to happen precisely will surely add to your portfolio.
Keeping all these things in mind and having a well devised strategy will surely make you a successful forex trader.