Ever wondered what sets the successful Forex traders apart from the amateurs? I had the privilege to meet with a number of full time traders and I’ve noticed that those who are more successful always have the share the same few characteristics. It seems like these few common factors are the reasons why they consistently outperform the amateurs and rake in higher returns.
1) They Have A System
Every successful Forex trader I’ve met has their own trading system – every single one of them. While they may use different strategies based on their differing personalities, I’ve realized that they have all set up some sort of system to decide on their trades.
And they all follow it, strictly to the letter.
E.g. when this happens, I will do action A. When that occurs, I will carry out action B. As a result of these systems in place, these traders are seldom blindsided by the markets. They are decisive with their trades, never hesitating like the amateur traders. Trading for them is a simple thing to do. All they need is to stick to their systems. Amateur traders on their other hand, have no systems in place. As a result, they have to make their buying and selling decisions on a spot.
This not only takes up a lot of mental energy, but it also takes up a lot of time as well.
Many trades are missed because of their lack of a system and they end up being disappointed with the missed opportunity.
2) They Have Emotional Mastery
Another thing I’ve noticed is that successful traders are all in control of their emotions. As trading can be a very emotional thing, good traders are those who can keep their emotions can check even after losing a trade. An experienced trader once told me that every single one of us will experience two situations that will put us in a very emotionally vulnerable position while we are trading: One occurs right after we have lost a trade. The other [situation] happens immediately after we won a big trade.
If you want to be able to manage and profit with large sums of money, you must have emotional mastery over yourself.
3) They Continually Invest Into Their Trading Education
Did you know up to 90% of forex traders are losing money? They are determined to “save money” so they read up and try to figure out trading by self education. Unsuccessful traders often erroneously believe that trading is just a matter of strategy. However, those who have traded would know that it is much more than that. It is a matter of trading psychology, trading discipline coupled with trading strategy.
Usually, these traders empty their accounts twice before they decide to seek help.
On the other hand, all successful traders have a mentor of some sort. They understand that if you want to be good in your trading career, you have to first invest in your trading education. Each of them has mentors who are successful traders to guide them and pass down their trading strategies and winning mentality. Even top tennis players like Federer and Djokovic have employed coaches to help them stay on top of their games. In fact, it is the amateur players who refused to employ coaches that fail to progress. If you want to trade profitably in a consistent manner, consider investing in your trading education or finding a trading mentor.
Image Credits: sportsbusinessinsider.com.au