June 21, 2017, 12:10:30 PM EST
by Newsmovesmarketsforex Staff Writer
Trading in the Foreign Currency Exchange (Forex) is a craft. Like all crafts, mastering it will require dedication, practice and hard work.
Before you start making money, you will have to learn a few tricks of the trade. Here are 7 things that successful traders do:
They Have a Defined Set of Goals
Successful Forex traders are great planners. Before each of their ventures, they have in mind what it is they are trying to achieve. With a clear mindset and pre-defined goals, they get into the field quite prepared.
They Carry Out Rigorous Risk Assessment
Risk assessment is very important for trading confidently in the Forex landscape. Successful traders perform thorough risk analysis before they join in the action.
They know exactly what they will be losing if things do not go as planned. This allows them to stay in control of the situation.
They Know Their Entry and Exit Timeframes Accurately
Successful traders are seasoned professionals. This means they know how to accurately read charts. For instance, they might be using a weekly chart for trading directions and a daily chart to time their entry. However, they know how to accurately synchronize the two for better decision-making.
They Have Learnt to Like Small Losses
Successful traders have adapted to the idea of small losses in Forex. They do not use the money that they have allocated for trading. Also, the maximum risk they take on total funds is 2%.
They Think in Ratios, Probabilities and Percentages
Successful traders are good with numbers. They are wary of changes in the market and know exactly what change will lead to what effect.
Thinking in terms of ratios, probabilities and percentages allows them to have an edge.
They Never Make Emotional Decisions
It is not gut feeling or emotions that drive their decisions—it is data. Chance events, such as winning, consistently on a particular platform, do not let them lose sight of the situation. Objectivity is one of the crucial keys to their success. Forex traders should be extremely aware that investing or trading in the foreign exchange markets encompasses a great deal of risk and may not be suitable for everyone. Prior to investing money in the Forex market you should access or consider your investment objectives, level of experience and risk appetite. One should only use risk capital, traders should never invest money that you cannot afford to lose.
They Carry Out Analysis Every Weekend
On weekends, the Forex markets come to a halt. This gives successful traders some time to look for patterns and market trends. With insights into the field, they become better players. New Moves Markets Forex provides the latest and most relevant Forex market news. The platform serves as a go-to resource of forex rates and charts, technical analysis, real-time Forex calendar and more for Forex traders around the world.