In the Forex market, everyone wants to become the infamous powerhouse broker with an unending stream of money coming out of their pockets. The reality is, according to Forex brokers, 90% of traders fail terribly because they just do not know what they are doing, how things work, or that they aren’t prepared enough. The other 10 percent, well, consider that only 5% comes even while the other 5% experiences repeated success. How do they do it? In this post, I’ll explain five key principles required to become a power trader:
1) Education: these traders aren’t your everyday traders, they know the ins and outs of the Forex market and so they have significantly invested in their knowledge to the point where they know each aspect of the Forex system. They also learn from each successful/unsuccessful trade and develop strategies to decrease their risks–they are constantly learning.
2) A Trading System: these brokers have a solid Forex system whereby their trades are enacted with as much strategy as possible. They are on a system that pushes them towards discipline and are very aware that if the Forex market signals their system, then they probably have a higher chance of success.
3) Price Action: based on the market trends effecting prices, repeatedly fluctuating, these Forex traders know that if their prices match according to their strategy (often using Candlestick method), they can fully do their trade.
4) Manage Money: these brokers are knowledgeable about Forex market to the point that they exercise humility and diligence because not all Forex trades become successes. They have a way to manage their risks and avoid as much loss as possible.
5) Psychology: Forex requires a lot of hardcore unemotional behaviour because being a hypochondriac is simply not the way to be successful. They don’t cry after every failed attempt, for they know it’s been a gamble. So they are understanding that each trade can give them success and failure, there are two sides to every action.
These five factors are important, I believe, particularly the psychological aspect for Forex trading can become emotionally devastating. In the end, what makes you successful and what makes you lose is pretty obvious, the success is governed by rigorous determination and emotional control.