Qualities / Characteristics of a Successful FOREX Trader

The Following is an extract from my book I hope it helps you.

In times of change, the learners will inherit the

earth while the knowers will find themselves

beautifully equipped to deal with a world that no

longer exists E. Hoffer

Qualities / Characteristics of a Successful FOREX Trader

Currency trading in the Forex market can give you the time freedom and

financial freedom that you have always wanted. However, in order to be

successful at trading in the Forex market, there are a number of

qualities/characteristics that a trader should posses.

When I started trading, it seemed that scamsters abounded! Everyone was

offering the latest and greatest software, at substantial cost, that was sure to

make you money. easily! You would look at various charts, and review signals

and place trades. I was fortunate to have the time and financial resources

available to research and implement the use of many such systems. I quickly

came to realize that perhaps Forex trading was not for everybody, as I had

several friends who entered this field along with me and they did not achieve

success. I would now like to share with you what I have learned about what I

believe to be some qualities that are essential to being a successful trader.

x Do not use trading to put food on the table. Forex trading should not be

used as your only source of income. The correct trading decisions cannot

be made while under the strain of meeting living expense obligations.

x Have a steady flow of income through other sources, such as; a working

family member, full/part-time job, other business. In the absence of one of

these options — DO NOT trade your money. It is strongly recommended

that you use a demo account during this situation.

x We tend to equate time with money ie: the more time we spend at

working, the more money we make. You must be able to change this

mentality in order to trade in the Forex market. For example 1 hour will

not necessarily yield $20, and 10 hours yield $200 and so on. Similarly,

traders who are not able to make this change may have their decisionmaking

affected by having the urge to be involved in a trade at all times,

(whether appropriate or not) feeling that if they are not working, they are

not making money. A successful Forex trader will not equate time spent

with earning potential.

x Feel worthy about your contribution to society as a Forex trader.

Although, we are not the machinery. we are the oil that makes the

machinery move, as it relates to global commerce.

x Has an above average amount of perseverance. Perseverance can be a

double-edged sword. While a Forex trader must have goals, and the

perseverance necessary in order to achieve them, persevering in the

wrong direction can have disastrous consequences. You need to

understand whether the system or method that you are using to trade the

Forex market is in fact correct, and when it is, you need to be able to

persevere.

A successful Forex trader has the ability to accept mistakes and learn

from them. Forex traders may have occasions where they do not follow

their system, they may let their emotions get in the way, they may not get

out of a trade when they should have, they might bend rules,

etc. Regardless of how much training you get, you are definitely going to

make mistakes, but the point is to learn from them. Mistakes then become

an opportunity to add to your knowledge.

A successful trader has the maturity to accept defeat in battle in order to

win the war. If a trade is bad, let it go. Do not hang on to a bad trade,

accept your losses and know that success will come. You may in fact

have several losses in a row, but persistence is key!

A successful trader has the ability to wait for the right moment. To use an

analogy, let us consider a lion; the lion does not chase their prey all

around the forest, but rather lies in wait for the right moment then

pounces. So too must the trader be patient and not chase around the

market, but wait for the opportune moment to enter.

A successful trader exhibits adaptability. The only constant in the Forex

market is change! Rigid systems do not work because the market

changes. If a trader does not have the emotional maturity to change their

systems along with the changing market, they will not be able to have

continued success. Software systems cannot be successful because they

are based on historical data. Although history repeats itself, it does so in

ways that you cannot compute. You need the intelligence of a human

mind to decipher and adapt and change the strategies according to the

new market environment.

A successful trader has the ability to make and follow rules. Forex traders

need to observe what they have learned from other successful Forex

traders and they need to follow the rules. I always tell my participants that

you are a slave to your system while you are in a trade, you can be a

master of the system only when you are out of a trade. This means that

you have certain rules by which you enter into a trade and once you have

entered, you must stick by these rules. If you want to change the rules it

is not to be during the trade, you can change or tweak your rules after the