Effective Habits of Highly Successful Forex Traders – Part 2 of 3
The first installment of a three-part series underlined the importance of forming good habits to be a profitable trader in the Forex Market. Four habits were mentioned – Personal SWOT Analysis, Never miss a Mission, SMART Goal, and Plan Each Move. Having explained them, the foundation for becoming an acceptable trader who has the potential to be successful was laid out.
To further pave the road to becoming a success as Forex trader, the continuation of the list has to be revealed. It is necessary to point out though that the contents of list are, by themselves, merely advices. Instrumental to their success or failure is still the person carrying them out. Having said that, following are the other habits continued:
* Plan for Resiliency
As mentioned, every move that a Forex trader makes has to be planned out. However, given the unpredictability of the market conditions, Plan B has to be at hand, and if possible, Plan C. Success, after all, is getting up when you fall, right? Well, in this case, succeeding mostly happens when plan B is ready to roll even when pieces of a shattered Plan A are still lying around.
* Live and Breathe Discipline
Doing the right thing even when nobody is watching basically defines discipline. There can be a number of reasons why the dream to be a profitable trader can easily be abandoned, making an unsuccessful trader simply embrace his inability to penetrate his chosen field as inevitable.
But imagine a scenario where a trader experiences a taste of how it is to win. Undoubtedly, he would feel heady about it especially when conditions within which he achieved it are erratic at best. Before he knows it, he has spent more than what was planned. Consequently, a precedent to what could be a dangerous practice is created.
* Practice Patience
Looking at today’s generation, it would seem that patience has gone out of style. Everybody wants be a profitable trader yesterday. Successful trading is expected to happen one after another. Everybody is in hurry to master the trading system to the point of sacrificing what’s important.
But the value of patience has remained constant. When somebody aiming for success plays his cards properly in the right conditions and the appropriate time, then the sweetest fruit imaginable can reaped.
* Untiringly Persevere
There is a prayer asking for wisdom to know when to pursue something and when to let go. Perhaps a trader can practice this as he starts his day that may constantly be hectic with endless concerns about market conditions and other factors that may affect a successful trading.
* Know the Trade Inside-out
There is something to be said for being prepared in any battle. If a trader knows the system inside-out, he’ll be able to anticipate anything. That is not to say though that he will succeed at every attempt. But at least, his batting average will be high.
* Risk-taker, Risk Manager
A prepared trader, before engaging in any transaction, knows what to expect. As such, he has an idea of the kind of risks he is taking, as well as their magnitude. Being equipped with such knowledge enables him to anticipate possible outcomes. This consequently allows him to take calculated risks, which will have minimal negative impact should they don’t pan out the expected result.