If you want to make your fortune trading forex, then there are a few key elements that you will need to pay attention to as you continue in your day to day trading activities. These are not optional for the professional trader, and there are certainly other things that could be added to this list.
To begin with, all veteran traders will tell you to never stop learning; that you should always be a student of the market. There are always techniques to learn, tools to add to your repertoire, and nuances of the market that will be new to you as you continue in your business.
Secondly, all professional traders are very well versed in market analysis. This includes what is called "technical" analysis, as well as "fundamental" analysis. The first deals with price action and repeating patterns, and the second deals with the factors underlying a country's currency, and the political and economic factors that affect it's value.
Money management always ranks high on a pro's list of essentials. This is the concept of understanding risk, setting reasonable risk parameters, and developing trading plans around those parameters so you can preserve your capital first, and then concentrate on making consistent profits.
Market psychology is a subject that has filled many books, and one that the professional forex trader understands very well. The idea of market psychology not only deals with the actions of the "mob" that are trading the markets at any one time, but more importantly the actions and mindsets, fears, and doubts of the individual players.
Nowhere is the concept of "know thyself" more critical than in the forex and other financial markets. A trader must understand his strengths, weaknesses, fears, emotions, etc. The ability to take a loss or series of losses, and still stick with your trading plan will require experience, as well as mental toughness. Fear and greed will generate unsound trading decisions, and they also must be understood on a personal level and dealt with logically.
Finally, in the ranks of the professional trader, you will find that there are none who believe they are an "island". The professional understands that he can learn and glean from other pros in the business, and that it may be that one tip or technique from another trader that increases their profits exponentially.
The veteran forex trader gains important insight from others' perspectives, and does not fall into the trap of thinking he has the final word on any subject. Networking with other traders online, or in person is a vital part of a trader's continued education and profitability.
These elements, if understood and put into consistent practice, will help the forex trader to continue to improve his trading, and of course his bottom line.
| Are you tired of losing your hard-earned money to the forex market? Would you like to start making consistent and serious profits? Grab your FREE E-book: "Insider Tips and Techniques on How to Trade the Forex Market Like a Pro". Click here. We're dedicated to your success! |
0 comments:
Post a Comment