The Forex market is the largest financial market in the world. More than $4.5 trillion is traded all over the world and due to the massive volume of the transaction this market is free from external manipulation. Those who can understand the market nature can easily make a decent profit from this market. But the statistics reflect a dangerous picture of this trading business. More than 95% of the investors or retail traders are losing money in Forex. Due to this data, some of you might think about whether trading is the right profession. After reading this article, you will be able to answer the question of whether you can become a successful trader or not.
Having patience in trading
Do you have the patience to wait for a certain trade setup? Can you stay in the market for more than weeks without executing any trade? If not, trading might not be the right job for you. The professional Aussie traders know the importance of quality trade execution. They never rely on an aggressive trading strategy since it causes them to lose a big portion of their investment. Being a new trader, you need to know your patience level. Those who are looking for a quick profit in trading is making a big mistake. Just like the traditional business, you need to have a valid trading strategy to make a profit from this market. To do so, you must have strong patience.
Do you have enough money?
If you trade with the last savings, you are not going to make a profit. You need to execute the trade in the Forex trading account without having any stress. Being stressed in the currency trading business will force you to overtrade the market. Just look at the professional traders at Saxo. They never trade with the money that they can’t afford to lose. Things might seem very easy since you will have a high leverage trading account. Using the leverage is more like catching a falling knife. Unless you have the skill and proper training, you are most likely to hurt yourself. So, it’s better to trade with the money that you can afford to lose.
Are you ready to learn new things?
Learning is a continuous process in trading. If you think you can make big profits without learning the details of the market, you will lose a big portion of your investment. The pro traders never stop learning new things. Unlike them, the new traders start to trade the market without knowing the major news data. But high impact news has the potential to change the market trend. So, try to learn the details of fundamental analysis so that you can fine-tune your trading strategy. This is become an active student so that you don’t have to miss any valuable information.
Trading with discipline
You must follow the rules very strictly in the trading profession. Those who trade the market with aggression are always losing money. Being a fulltime trader, you have to remember the fact, mistakes will cost you money. If you trade this market with proper discipline, you can easily cover up the loss. Make sure the winners are always bigger than the losers. The naïve traders often trade the market with a negative risk-reward ratio but this is one of the major causes for which they failing in the trading profession. Develop your skills and trade the market with discipline.
Be prepared to lose
Are you ready to lose trades? If not, you are not ready for trading. Developing your mentality is very crucial in the trading business. Trading can be stressful and you might have to lose a few trades in a row. If you fail to accept the fact, losing trades are inevitable, you are going to trade with high risk to recover the loss. This will force you to over trade. Always be prepared for the worst-case scenario.