Every time an individual shows an interest in forex trading, he is pointed towards the fact that only 9 out of 10 traders actually succeed in making a career for themselves. Unfortunately, this and other similar facts often combine to influence the FX trading belief system of the new trader
Your belief system would play a major role in not only how you perform in the forex market but also how you go about FX trading in the first place. This is why even before you start trading you need to figure out what you believe. Here are some beliefs that successful forex traders have been known to exhibit.
Risk Usually Comes in More Than One Shape
Individuals who are successful in FX trading are extremely sensitive to risk. This does not mean that they are scared of risk but that they understand its different facets. They understand that risks have a tendency to show in the strangest of forms and places. Moreover, they are also very aware of risks to their positions in the market.
Objectives, Goals, And Targets Are All That Matter
Successful forex traders are very determined individuals. In fact, they are so determined that they can be considered to be blinkered to all other things except their FX trading objectives, goals, and targets. They display a single-minded focus on facts and achievements and are immune to distractions.
Position Sizing Is Crucial to FX Trading
Such traders are also known to be obsessive about position sizing in FX trading because they believe that this is the single most effective tool to deal with risks and ensure profits in the market.
They are known to change the size of their positions on the basis of the way the market is performing, the nature of the trend they are targeting, and their own risk tolerance levels.
Losses Must Be Analysed
Traders who succeed in FX trading are also extremely confident and self-assured. This is reflected in the fact that they never run away from failures and instead face them head on. Every time they incur losses, these traders make it a point to go over them in extreme detail. This is also why such traders are not known to repeat their mistakes.
Recordkeeping Is Crucial for Improvement
Organisation is one of the strong points of these individuals as well. They tend to focus a lot on planning and try to be as meticulous as is humanly possible. Because of their habit of keeping things simple, organised, and uncluttered, they tend to know what they want, where it is, and how to utilise it properly.
Every Contingency Must Be Planned For
Finally, traders who have made a lasting career in FX trading are also strong believers of the fact that as long as they plan for every possible contingency they will reap rich dividends. Thus, they are never surprised by the way their positions move in the market, regardless of what the facts were and what the experts said.