21 Signs you have what it takes to be a Forex Trader
While the debate about whether good traders are born by nature or nurtured continues, there are some traits that are exhibited which can lay the ground for you. If you have been considering to become a successful forex trader, here are 21 signs that you might be on the right track.
1. You have the patience of a sniper
You are a patient person, and you wait for the right opportunity to strike in general. You are prepared but aren't impulsive enough to pull the trigger immediately. You prefer to take your time, weigh the risks before you decide what to do.
2. You don't mind not trading, for days in a row
If there are no opportunities, you don't mind waiting for the right set up, even if it means having to stay away from trading for a considerable period. The urge to always be in a trade doesn't bother you much. Trading quality set ups trumps quantity for you.
3. Profits are not your priority
Your ability to be in the game for the long run is your main goal. A losing trade for you offers a learning opportunity that you can apply to your next trade, and you can take a step back and analyse your mistakes.
4. You are confident in your approach
Maybe it is to do with the fact that your decision-making process is driven by logic and facts, or perhaps you are just naturally good at it. Whatever the reasons may be, you are confidence in the decisions you make, and you are willing to see it through.
5. But you are flexible as well
You are open-minded and flexible, but not fickle. You are willing to see reason in a contrarian view and you are humble enough to admit that you were wrong and change your view, as long as you see the reasoning.
6. Logic trumps emotions for you
You prefer to look at the facts rather than letting emotions dictate your day to day life. People might sometimes accuse you of being too black and white, but that doesn’t bother you. At the end of the day, you prefer to make decisions based on the facts and the data available to you than go by the heat of the moment.
7. Charts excite you
You never get bored of the price charts. On the contrary, you are always on the lookout for any new meaningful information that you could get from looking at charts other share. The quest for improving your analysis is always at the centre and chart watching is something you enjoy doing.
8. You know your indicators inside out
EMA's are not just continuous average prices plotted on the chart, and you truly understand the meaning from the way the indicators are lined up on the chart. You look at indicators as a fishing net, waiting for the right fish to fall into the net.
9. You love information
You are always up to date on the latest economic and fundamental developments. You never tire of more information, but you also know what information to absorb and what information to filter.
10. You have at least one demo account
You might have one, if not more demo accounts and you know which account is for what. You might be using one demo account to test new strategies, or you might use another demo account to run your expert advisor.
11. You have at least or have had in the past, tested out different trading and charting tools
They excite you, and you are always on the lookout for the latest technology driven trading or charting platform.
12. You have a fairly good idea of the current interest rates
You confidently quote the interest rates with a fair amount of accuracy. You can also name the central bankers of at least three major central banks in the world. You know whether the central bank in question is in a tightening or a loosening cycle.
13. Talking about economics excites you
You can talk endlessly about monetary policy and you are never shy of giving your opinion on policies. In fact, talking about economy excites you and it could very well play a part of your regular conversations with family or friends.
14. Your browser home page or your bookmarks have at least one financial news website
Google finance, Bloomberg or CNBC are just some of the many financial websites that you visit on a daily basis. Chances are that if you haven’t had one of these websites as your homepage, you do have them in your bookmarks list.
15. Your mobile phone has at least one finance app
Your mobile or smart phone has at least one finance app that you visit every day and chances are that you are always on the lookout for any latest new finance apps. For you, the finance apps are the same as games are to a teenager.
16. You have a subscription to the Economist or its equivalent
And even if you don’t have a subscription, chances are that you have thought about subscribing to one of the financial news portal at some point in time. You might even visited the subscription page or taken out a trial subscription to one of your favorite financial news portals at some point in time.
17. You have a fair idea of the swaps based on the currency pair
You can, with fair amount of accuracy know which currency pairs and the overnight positions attract positive or negative swaps. You also know why the swaps are, the way they are. For you, trading is not just buying or selling but understanding the real fundamentals behind the currencies.
18. You have a special affinity to finance based movies and documentaries
In your quest for information, you nurture a special affinity towards finance based movies and documentaries. These offbeat movie and documentary genres evoke the same excitement just as a mainstream commercial blockbuster would. In fact you might have saved a few movies on your hard drive.
19. And you always look to learn from these movies and documentaries
It is not just about watching the financial genre movies but you are also on the lookout of any new information that you can take away from watching such movies or documentaries.
20. Failure is only a stepping stone for you
Your approach in general is that of optimism and failures never set you back. In fact you spend time to understand what you did wrong or what went wrong and you are always willing to learn from your mistakes.
21. Everything is inter related
You understand the fact that everything in this world is interrelated and the consequences of decisions made in one part of the world can affect things elsewhere. You understand that politics and economy go hand in hand and you are willing to see the bigger picture. You might take a contrarian view some times, but you are confident in your views as well.