To become a successful trader, you must learn the 3 pillars in Forex trading. They are trading strategy, money management and psychology.
The following are the qualities that they posses:
Focus on Bigger Picture
Successful traders do not focus on the small picture, but on the bigger picture. They do not focus on current losses, but on the overall performance of their trade. They trade, regardless of the losses they encounter, because they believe in their system and in their winning probabilities.
Remember money management? Successful traders follow the golden rule of not risking more than 2% of their capital to increase their probabilities in winning. This means that with 2% risk, they have 98% chances to profit in case the trade goes to the opposite of their plan.
Master of Their Own Emotions
Successful traders also do not let their emotions affect their trade. They do not trade base on greed or fear. They are master of their own emotions.
They don’t trade base on the opinions of other. They do their homework before entering a trade.
Stick to Their Trading Plan
Successful traders trade base on their trading plan, which they have “perfected” through years of tweaking it. They do not enter a trade when it is against their trading plan.
They keep a trading journal to track the progress of their trade and seek ways to improve their trading style.
They Set Goals
Successful traders set goals. Once their target return is met for the week, they do not enter another trade or if they do, they would risk smaller percentage of their capital. Why? One of the causes that beginner traders blow up their account is that they tend to over trade.
Step Out of Their Comfort Zone
Lastly, successful traders are not afraid to go out of their comfort zone. They do what are necessary to further their growth.