10 habits of the successful traders 02-11-2016 by LiteForex
Training materials dealing with the basic ideas of Forex trading. The materials of this section will help you understand the Forex market faster than you think.
Most of the traders usually think about gaining profit at Forex but only few of them ponder a question what steps to undertake in order to earn profit and grow professionally. Articles like "Useful tips at Forex" are very popular; however only few people use recommendations given in such articles in trading, as it can be difficult to introduce something new in life; we all prefer to follow the lead of the old habits.
But what is a habit?
A habit is an integral part of the life; it is an action, which you do not choose, but do automatically. It often happens that a habit prevails over your plans.
"A habit is an action, which you make without an effort or intention."
And this is a great advantage if a habit is good, because you do not need to force yourself to do things! You save energy for the other purposes, in our case, for trading. We all have old habits but a question is how we can acquire a new habit?
Formation of new habits
When a person decides to form a new habit, his/her first task is the automation of a skill. One of the main methods of achieving this is the repetition. You will need a strict self-discipline in order to repeat the same action many times. Note, that self-discipline is a feature, which will be very useful in any kind of activity. The second important element in the process of forming a new habit is an emotion.
If you repeat an action without being involved in the process emotionally, it will take a long time to form a new a habit. Trading can act as an emotion component for forming a new habit. Trading in the Forex market involves a lot of emotions, which can be useful for our purpose. Self-discipline, repetition and emotional interest are the components, which will help you to form ten habits of the successful traders.
№1 Habit to study
Set aside some time, at least an hour a day, for reading books, viewing webinars, and studying other training instructions. Remember that learning new things is one of the most important habits of a successful trader.
№2 Habit to stick to a plan
Every trader has a trading strategy, which helps to control trading. This strategy is a comprehensive plan of action, which you must stick to when you conduct trading operations.
№3 Habit to admit mistakes
This is an important habit because there will not be any development until you learn to take responsibility for the trading results. If you take responsibility for the results and admit that a failure is your mistake, you follow a path to development and success.
№4 Habit to analyze
It is important to admit a mistake; however it is even more essential to be able to trace an error. In order to do this you need constantly analyze your trading and answer the question "Why?" You should stick to the rule to make notes of all the actions you undertake in trading. So you will be able to find errors, analyze them and rectify, thus, improving your trading strategy.
№5 Habit to challenge
Trading is an activity involving high risk and it is important to challenge your decisions. Even in the situation when everything seems stable and predictable a trader shall challenge a forecast and think through every detail. It means that a trader shall enter the market with a smart strategy and deliberate plan of capital management.
№6 Habit to elaborate details
A trader shall search and find drawbacks in his/her trading and eliminate them trying to elaborate a perfect trading strategy.
№7 Habit to trade in trends
It is obvious that trading in trend is the most reliable way of trading. There is no point in arguing with experts.
№8 Habit to place stop-orders
It is not wise to disregard placing pending stop-orders. It has been discussed so many times that we will not take a trouble to explain the importance of it. Just make it a rule to place a stop-order and never forget about it.
№9 Habit to make two alternative plans
The price will always go either up or down. However, a degree of possibility of the price movement is different. Forex market is complex as it is affected by many factors. That is why a successful trader must be prepared to any development and have two plans of action
№10 Habit “what man has done man can do”
A habit to think creatively and have faith in your ability to succeed is a very important characteristic of a trader. If you learn to think positively and believe that you can reach success, you will achieve all your targets.
Dear friends! Go in and win!