Successful Forex Trader Habits
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Successful Forex Trader Habits

By SiliconIndia   |   Wednesday, 25 October 2017, 05:37 Hrs
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These are 4 rules that most successful Forex traders follow. Although these habits may seem simple, the only way to acquire them efficiently and definitively is through a lot of patience, discipline and experience.

1. Use a plan

No successful Forex trader would last long without a good plan for each of the trades he makes. While it is possible to succeed in having successful operations from time to time without following a previous plan, in the long run, this will not work, and end up losing money.
Successful and profitable traders have specific attack plans for each position, including:

- Position size
- Entry point
- A well defined Stop Loss (S / L) (How much is willing to risk)
- A well defined Take Profit (T / P) (The profit target you are looking for)

A successful Forex trader is also flexible in its earnings, sometimes closing its positions before the T / P if it judges that the market will not advance further in its favor. On other occasions, you may rather extend the Take Profit if the market allows it. However, what a successful trader never does is move the Stop Loss from the original spot unless it is in favor of the position and with the objective of assuring some level of profit already achieved up to that point.

2. Anticipate important events

Just like in chess, the best players are always thinking about future moves trying to anticipate their opponents. Successful Forex traders will always be aware of future events and the expectations that they may generate. Based on these considerations, they build their Forex trading strategies and they will be ready and prepared to operate the moment they have the events, and not to drift like the rest.

3. Stay flexible

Successful Forex traders are not emotionally involved with their positions. They recognize that it is not about being right or wrong, it is about making money. They adapt to the latest information and are willing to quickly close their positions. At the same time, they are open to taking advantage of new opportunities that may appear in the market and are ready to react. Being prepared means also maintaining enough margins available to be able to open operations at the right time.

4. Be prepared to operate

A successful trader is always prepared the best possible in a market that is open 24 hours and subject to events on a constant basis and in any part of the world. A successful trader must be prepared to:

- Acting in front of the economic events of the following week to two weeks: Know the results of previous reports and what is expected for those who come.

- Address Scheduled Speeches: Know who will talk (from central banks, ...), who said last time and who are expected to say this time.

- Know the meetings of the Central Banks: Have an economic calendar at hand with the following meetings and what the market expects to be decided in each case.

- Be aware of the meetings of financial leaders, such as the G7 or the financial ministers of the European Union: It is important to know if any issue affecting foreign exchange will be touched at any future meetings.

- Be aware of the Liquidity Conditions: It is essential to be aware of the moments in which market liquidity may be affected, either at certain times of the day when some markets, holidays, end of month, etc. are closed.

- Acting before unexpected events: It is good to be enrolled in services that provide alerts on news or unexpected events, to let you know on possible opportunities or risks.

By knowing and also applying the above rules, you can trade better in the future.

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