It is ironic that these people have achieved success in all aspects of their lives and careers. These people see forex https://www.fxcm-markets.com/forex/ as a simple game, and are not able to compare it with their profession.
I have witnessed many lawyers, doctors, accountants and others who are specialized in their profession fail at forex trading. These professionals thought that they would be able to replicate their successes in other areas of expertise in the forex market. They wind up making losses that are so large and fast, they decide to give up.
The reason is that they don’t have the specific characteristics required to be a successful trader.
Look at these 8 common characteristics.
1. Not all people take Forex for granted. It is hard for them to believe that forex trading can be as demanding, or even more difficult than many specialized occupations. Trading well takes time and a great amount of effort.
2. Foreign exchange traders understand the risk of trading. Know that trading forex can be a risky business. In order to protect their investment, they use good money-management techniques.
3. Instead of jumping straight in to the forex market, they begin by studying the basics. It is important to spend time learning about the technical and fundamentals of trading forex.
These traders follow all of the established rules. They have a good understanding of how to trade with the trends.
4. The traders are very patient. They know that trading is a long-term endeavor. It is important to them that they start out slowly, always with demo trades. They advanced from demo to live trading initially using a modest capital.
5. It is important to them that they have a good mentor, as with any occupation. Since they’re beginners, the traders seek knowledge and advice from those who are more experienced.
6. One proven trading strategy is used and they only deal with one currency. Do not change strategies. They do no try to trade several currencies at the same time.
These companies are dedicated to maximizing their profits by minimizing risks and understanding them.
7. They do this by setting aside enough capital to cover any losses. When they set aside money they can afford to lose, it takes the pressure off of them. On executing trades they follow their trading strategy.
8. They maintain records of trades. To improve their trading, they review all their wins and losses.
Trading forex is an easy game. All you do is either buy or trade. Why then do 95% percent of all forex traders fail to make money? Successful forex traders must possess something.