7 Things You Need as a Trader

Discussion in 'Forex - Currencies Forums' started by Daniela-TFC, Apr 17, 2014.

  1. Daniela-TFC

    Daniela-TFC Active Member

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    We tried to conclude the most important skills every trader should possess.

    1. Confidence

    If you do not have the necessary confidence your chances for success are slim. This is not only valid for trading but also for the rest of your life. In trading you have to believe in what you are doing. There is no room for fear – mistakes are part of the game. The key to success is to analyze your mistakes and draw the necessary conclusions in order not to repeat the mistake. This is the progress you will make in your trading.

    2. Strategy

    There are so many different strategies out there: trend trading with momentum, scalping, news-trading and so on. You have to find a strategy which fits your personality. Then you have to do everything necessary to master this strategy. The fastest way to learn a strategy is to follow a successful mentor and copy his or her trading with your own style.3. Specialization on a specific product

    Specialization is important. Nowadays you can trade futures, equities CFDs or Forex – there is a huge variety of instruments available to trade. It is all right to try every instrument available but sooner or later you will have to find out which instruments suits you best. If you trade a bit in stocks, trade a bit in futures and some forex you will never truly become a master in trading a specific instrument. Specialization is absolutely necessary.

    4. Timeframe

    You will have to find the timeframe which best suits your personality. If you are a very nervous person trading on the shorter timeframes is probably not for you. Finding “your” timeframe to trade on is essential for being a consistently profitable trader.

    5. Capacity to cut losses short

    All good traders know that they have to cut their (small) losses and don’t allow them to become big losses. As a trader your money is the basis of you activity. If you lose it you are out. If you cannot limit your losses you will be sooner or later out of the game. You have to be confident in what you are doing but if the market proves you wrong you will have to cut back your ego and take the loss.

    6. Ability to make decisions

    If you go to a Restaurant with your partner and after half an hour you still cannot decide what to order then trading is probably not for you. You have to be able to take decisions, sometimes within a very short time. You cannot hesitate in trading – if there is a valid signal you have to take it. The markets move fast. It does not pay to be afraid and hesitate to pull the trigger. If you make a loss this is part of the game.

    7. Use your own brain

    In the long term it does not pay to follow the suggestions and trading recommendations of other people – you will have to use your own brain and develop a trading plan which suits you. If you are listening to “tipsters” you will never become a consistently profitable trader.
     
  2. Annabell

    Annabell Well-Known Member

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    Took me a minute to realise you'd linked to another article, and was about to say you seem to be missing a few points.
     
  3. Daniela-TFC

    Daniela-TFC Active Member

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    I appreciate your comment Annabell. It helps me to improve the way I post the articles.

    Thank you :)
     
  4. DomDom

    DomDom Member

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    And the old KISS method. Always Keep It Simple, Stupid! :D
     
  5. Thejamal

    Thejamal Guest

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    Feel like these tips apply to pretty much any profession. But I do think making your own decisions would be especially important in this field. At the end of the day, you got to make your own decisions on what trades are right for you or not.
     
  6. wanderingwildman

    wanderingwildman Well-Known Member

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    Confidence is the big one. You are going to have moments that force you think about what you are doing. You have to stay confident and always keep your goals high.
     
  7. BudFox

    BudFox Well-Known Member

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    Have a plan and sick to it. Don't try to beat the market because you wont; invest in it instead. Don't invest more than you can afford to lose. If a trade feels to big then it is.
    Learn from your own errors and remember that at the end of the day, you are finally taking your financial future in your own hands rather than relying on others. Enjoy the freedom.
     
  8. Annabell

    Annabell Well-Known Member

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    Haha, sorry about that :p

    I didn't mean it as a complaint, just an observation. Sorry if it seemed otherwise, but glad to help :)
     
  9. WestCoastXO

    WestCoastXO Member

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    Confidence and common sense are very important skills, in any task or profession, really. Don't be afraid to make mistakes and learn as you go. Focus on your strong points, strengthen them and capitalize.
     
  10. Daniela-TFC

    Daniela-TFC Active Member

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    No of course it didn't :D Have a great day
     

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