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Traits of Successful Forex Traders
Forex trading is not for everyone. There are a lot of variables to take into account, and there is always the risk of losing money. Some people just aren't cut out for it. If you are considering becoming a forex trader, you'll want to read this article carefully. It contains the traits that set successful traders apart from those who fail.
If you don't possess most or all of these qualities forex trading may not be for you:
Discipline. Successful traders formulate a trading system that works and stick with it. They don't try to trade "on the fly".
The ability to accept risk. Despite what many will tell you, forex trading is not without risk. You can lose money by trading, and you must be willing to accept this risk.
The ability to accept failure. Even the best traders in the world lose money on some of their trades. It's the nature of the beast. But the difference between them and average traders is that they don't focus on their failure. They accept it, learn from it, and move on.
Confidence. Successful traders have confidence in their knowledge and in their ability to make winning trades. They don't doubt or second-guess their trades.
The ability to accept being wrong. Hey, no one is perfect. You're going to make mistakes and there will be times when your analysis will be way off. Don't stubbornly stay in trades gone bad just because you refuse to admit being wrong. Cut your losses and look for the next opportunity to make it up.
Patience. Smart traders follow their system and wait for good opportunities to present themselves. It's not necessary to have positions open at all times. You may go a day or two without any trades being made. Don't trade just for the sake of trading. You'll jump into many more bad trades than good ones.
Knowing when to get out. The key to trading is not just knowing when to get in, you need to know when to get out. Many a trader has gotten greedy and stayed in a trade too long only to see their profits wiped out by a sudden downtrend. When your trading system tells you to get out, listen to it.
Know your financial limitations. Don't over-leverage yourself, and don't trade with money you need to pay your mortgage. If you do you'll risk ending up on the street. Only trade with money that you can live without. If this means starting small with only a few hundred dollars, so be it.
Recent Forex News
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Forex Technical Analysis Reports (ActionForex.com)
Technical analysis reports from selected analysts around the world on forex market. Available in ActionForex.com
Chart Of The Day: EUR/USD
Long-term price action on the EUR/USD daily chart, as shown, has come down a long way to approach the very significant uptrend line that has served as dynamic support since at least the beginning of 2006. This long-term uptrend support line is represented on the chart by the long green...
Daily Technical Strategist
A follow-through on Friday and Monday's weakness saw EUR attacking its LT trendline established since Feb'2006 today.Convincingly invalidating that level will leave the pair vulnerable to the downside towards its range breakout point at 1.4565.If the pair maintains its present weakness and closes lower today, resumption of its medium term...
FX Thoughts for the Day
Finally a break of the Resistance at 1.1035-50 has been seen today. The lower than expected German Ifo has triggered this rise. The Max High at 1.1060 already breached the pair could head higher later in the day towards 1.11. We have been calling for a break out for sometime...
Elliott Wave - EUR/USD, GBP/USD
The target in this week was achieved at 1.4900 after the zig-zag move that we have been monitoring. The dollar was stronger against the euro after the news released on Friday; any further poor euro news may add to near-term dollar strength, which will also have an influence on the...
Currency Technical Report
Euro reached the resistance levels we had set at 1.4800 area, according to our analysis yesterday, and then moved to new lows. There are only few things to add to our yesterday's analysis. The formation of an important low at 1.4450-4550 is a possible scenario and we will move towards...
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Forex Fundamental Analysis Reports (ActionForex.com)
Fundamental analysis reports from selected analysts around the world on forex market. Available in ActionForex.com
Oil and the Dollar Change Direction as Hurricane Gustav Threatens the Gulf
After gaining broadly in overnight trading on the back of a decline in oil and weak economic reports from Europe, the dollar changed direction once speculation rose that Hurricane Gustav might enter the Gulf of Mexico and threaten oil production. The Gulf, which is responsible for about 20% of U.S....
Forex Fundamental Outlook
. Data released in the U.S. today saw July new home sales climb 2.4% to an annualized 515,000 rate, following yesterday's existing home sales data. Second, the August Richmond Fed manufacturing index remained steady at -16. Third, the August consumer confidence index climbed to 56.9 from 51.9. Many recent U.S....
U.S. Market Update
The USD found some support overnight after the soft German IFO data sent the euro below 1.45. The USD/JPY cross was unable to gain the 110 figure but did bounce more than 50 pips before the New York equity open, while Cable traded as low as 1.8325, another fresh two-year...
Foreign Exchange Market Daily Update
The US dollar retained its strength against a basket of currencies on the outlook that a slowdown in the U.S. is spreading to the rest of the world. Despite news that U.S. home prices fell at a record pace in the second quarter, the pace of monthly declines in U.S....
Usd Gains on Eurozone Economic Weakness
The Usd showed considerable strength in the early trading session based on negative economic data out of the Eurozone. The EurUsd fell over 150 pips to the 1.46 level, while the UsdJpy rose 44 pips to the high 109 price. The GbpUsd experienced substantial losses trading with a 1.83 handle,...
Newsfeed display by CaRP
[CaRP] Can't open cache file.
Forex Technical Analysis Reports (ActionForex.com)
Technical analysis reports from selected analysts around the world on forex market. Available in ActionForex.com
Chart Of The Day: EUR/USD
Long-term price action on the EUR/USD daily chart, as shown, has come down a long way to approach the very significant uptrend line that has served as dynamic support since at least the beginning of 2006. This long-term uptrend support line is represented on the chart by the long green...
Daily Technical Strategist
A follow-through on Friday and Monday's weakness saw EUR attacking its LT trendline established since Feb'2006 today.Convincingly invalidating that level will leave the pair vulnerable to the downside towards its range breakout point at 1.4565.If the pair maintains its present weakness and closes lower today, resumption of its medium term...
FX Thoughts for the Day
Finally a break of the Resistance at 1.1035-50 has been seen today. The lower than expected German Ifo has triggered this rise. The Max High at 1.1060 already breached the pair could head higher later in the day towards 1.11. We have been calling for a break out for sometime...
Elliott Wave - EUR/USD, GBP/USD
The target in this week was achieved at 1.4900 after the zig-zag move that we have been monitoring. The dollar was stronger against the euro after the news released on Friday; any further poor euro news may add to near-term dollar strength, which will also have an influence on the...
Currency Technical Report
Euro reached the resistance levels we had set at 1.4800 area, according to our analysis yesterday, and then moved to new lows. There are only few things to add to our yesterday's analysis. The formation of an important low at 1.4450-4550 is a possible scenario and we will move towards...
Newsfeed display by CaRP
[CaRP] Can't open cache file.
Forex Fundamental Analysis Reports (ActionForex.com)
Fundamental analysis reports from selected analysts around the world on forex market. Available in ActionForex.com
Oil and the Dollar Change Direction as Hurricane Gustav Threatens the Gulf
After gaining broadly in overnight trading on the back of a decline in oil and weak economic reports from Europe, the dollar changed direction once speculation rose that Hurricane Gustav might enter the Gulf of Mexico and threaten oil production. The Gulf, which is responsible for about 20% of U.S....
Forex Fundamental Outlook
. Data released in the U.S. today saw July new home sales climb 2.4% to an annualized 515,000 rate, following yesterday's existing home sales data. Second, the August Richmond Fed manufacturing index remained steady at -16. Third, the August consumer confidence index climbed to 56.9 from 51.9. Many recent U.S....
U.S. Market Update
The USD found some support overnight after the soft German IFO data sent the euro below 1.45. The USD/JPY cross was unable to gain the 110 figure but did bounce more than 50 pips before the New York equity open, while Cable traded as low as 1.8325, another fresh two-year...
Foreign Exchange Market Daily Update
The US dollar retained its strength against a basket of currencies on the outlook that a slowdown in the U.S. is spreading to the rest of the world. Despite news that U.S. home prices fell at a record pace in the second quarter, the pace of monthly declines in U.S....
Usd Gains on Eurozone Economic Weakness
The Usd showed considerable strength in the early trading session based on negative economic data out of the Eurozone. The EurUsd fell over 150 pips to the 1.46 level, while the UsdJpy rose 44 pips to the high 109 price. The GbpUsd experienced substantial losses trading with a 1.83 handle,...
Newsfeed display by CaRP
Forex trading involves substantial risk of loss, and may not be suitable for everyone.