Forex trading can be very much profitable and stressful at the same time. Trading this financial market requires precise trade execution skills and strict discipline. Though the forex market offers our financial freedom but the success rate in forex trading is very low compared to any other business in the world. “Mistakes are good as long as you can learn from it”. But what good it will bring if we keep on learning without executing it in real life. All professional traders have some characteristics traits and road map behind their successful trading career.
Simple and effective trading: Trading the financial market can be tricky at times since the market behavior is always changing. Many new traders have messed up their forex trading career by making it too complex. On the contrary professional traders always look for “simplicity and clarity” in the market. “Strategies can never be sold neither be taught”. People can get an idea how to set their own trading style by seeing simple and effective trading strategy from the successful traders. Traders should test a new strategy at least for two months on the demo account before bringing it live in action. Building a solid working strategy doesn’t require complex tools and parameters. The success of forex trading truly lies behind simplicity and strong perseverance.
3D formula: This “3D Formula” very important in order to be a successful forex trader. Trading like any other business s in the world. To be a successful trader you need to follow the 3D formula, “Dedication, Devotion and Determination.” Out of 3 D if any of the single D is missing then trading the forex market will be very difficult. Professional traders are always passionate about their trade. They have a fixed plan and strong determination to execute their plan. 3 D in a forex trader will not develop in a single day. It develops with the years of experience in the financial market. Every single professional trader have this 3D formula embedded in their blood.
Proper money management: This is one of the vital tools to survive in this financial market. Without proper money management, no traders will survive this lucrative market. Taking too much risk in the forex market and a tendency “Get rich Quick” is the major violation of money management rules. Professional traders trade within their tolerance level so that if the trade goes against them they are willing to take the loss comfortably. They also make sure that potential incentive is at least twice the amount they are risking. A good risk reward ratio is the prime tools that the traders have in their arsenal. “Many high probability trades are not executed by the professional traders due to the absent of proper risk reward ratio”. Many traders expect unrealistic profit from this market which is totally absurd. It’s true that the luck might favors you sometimes but if you consider forex trading as your career then you should be taking control of own luck and pave your own way towards the door of your financial success.