6 Tricks of The Successful Forex Trader

by Andrew McGuinness     Jul 16, 2019

If you are looking to trade in forex and would like to become successful in doing so, it is more difficult and time-consuming than you think. Success within trading and investing sometimes may seem like a matter of luck, but there is actually a lot more to it. Here are six of the most essential tricks straight from the most successful forex traders.

1. Study trading on a daily basis

The way in which most forex traders have reached their heights might seem like pure luck for those unfamiliar with the foreign exchange. What was actually involved, however, was endless hours studying the market and trading. It is only by learning at a consistent rate that you are able to keep up with the strategic possibilities and history of the market. Studying will also help you to properly understand what exactly causes, or what has the potential to cause the market to change.

In order to know what to do with their money, traders need to learn about which occurrences are able to affect the market in a significant way. Political and economic news needs to be kept track of, as well as the social and political rapport among the countries whose currencies are being traded. It may seem like an impossible task to study trading, foreign exchange, and everything associated with these subjects on a daily basis. However, this is what the most successful traders have had to do in order to reach their heights. So, if your aim is to become successful at trading as well, hit the books.

2. Be patient

Perfection and brilliance never comes with your first try, no matter how good you are at anything. When failure does inevitably come, do not assume that the world of trading is not for you, that you were not meant for this field, or that this failure is something you cannot change by improving.

Realize that your failure with trading is not the first or only time anyone has failed within this market. Everyone that is currently a successful trader has failed countless times in the past. In order to recover from your mistakes, it is important to practice and continue doing so until you get a strong hold of foreseeing the exchange rate, reading oscillator and indicators, and analyzing charts. If it makes you feel any better, the mastery of most skills comes only after 10400 hours of practice.

3. Get a good broker

A good broker is basically any broker that is available as soon as you need them. Availability and speed is key. With trading, you cannot wait for your broker to become available to represent you. The market waits for no one, and makes drastic changes so quickly that your broker needs to be on his toes at all times.

4. Have a money management plan

Creating a money management plan is key for any successful foreign exchange trader. This involves plenty of research, but once a plan is created, you are advised to follow it closely and really commit to it. Your plan should outline how much you are to invest every month as well as how to deal with losses that may come your way.

5. Time your actions carefully

In order to succeed at trading, you need to get a hang of timing your actions appropriately. After a while, with practice, choosing the right time both to invest and to pull your investments will come as second nature. But until then, you will need to study the ropes and avoid making any drastic decisions when the market has reached an extreme high or low.

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