Not many forex traders are truly successful and last long. However, to become a successful trader is not impossible. One way is by knowing and learning from the characters of a successful trader.
Here are 5 characters and mental attitude of a successful trader that are very important for trading results:
Realize losses as soon as possible
Successful traders have learned from experience. They always do the cut loss so know the position is wrong. However, some traders postpone the cut loss in the hope that prices will be able to reverse direction as expected. The habit of delaying cut loss not only reduces profit but also destroy your account. If you are misplaced, realizing the loss as soon as possible is logical and reasonable.
Consistently run a trading system
Whatever trading system they use, successful traders always use it consistently and don’t change the system often, including risk management. Both methods, trading strategies, and risk management must be applied consistently. Changing trading methods or strategies before you know the advantages and disadvantages will greatly affect the final result. Only maximum performance will minimize risk, and maximum performance can be achieved by learning and practicing consistently. Consistency will build positive habits and will produce extraordinary results.
Successful traders always feel confident. However, confidence is not an exaggeration to boast of their strategy, nor because of the large number of trading accounts that are managed, or because they have many accounts in various banks. They are confident in carrying out the rules in the trading system. It has become a common successful trader character to always be confident and knows that as long as profit is probable, there will also be a risk of loss.
Usually, a trader’s test of self-confidence occurs when he experiences a losing streak. If he does not conduct an evaluation and instead easily changes the trading system, then that means he is not sure of the previous system. Conversely, the character of a successful trader can review losses and fix the trading system. Thus, they don’t make the same mistake in the next trade.
Does not involve the ego while trading
A successful trader knows that he will make a big profit when he tries hard. Besides, he also realized that trading also has a high risk. Although many things seem to make him get a lot of profit, he does not follow the temptation of his ego and keep trading according to plan. He will only act based on the applied money management rules. According to Daily FX, setting your own rules to follow when you trade can help you control your emotions.
If he obeys his ego, he will overtrade when he has many winning trades, which can even be fatal. When it is overtrading, traders usually no longer calculate money management or measure trading opportunities with rational analysis.
Successful traders always learn
One more successful trader character that is no less important is to never stop learning and motivate themselves to be able to trade better. They always dig up information and learn from fellow traders. More importantly, the learning process does not stop until it can produce consistent profits. However, the characters of successful traders are those who want to keep learning to keep abreast of changing market conditions.