Most people automatically assume that anyone can potentially become a highly profitable forex trader, regardless of their personality or character traits. However that’s not necessarily the case because there are definitely certain attributes that will separate the winning forex traders from the losing ones. So what are these attributes?
Well the first attribute that many successful forex traders possess is dedication. Because of the very fact that it often takes several months or even years to become consistently profitable, if you don’t have the determination to succeed, then you are highly likely to fail and therefore give up forex trading altogether.
Another attribute you need is discipline. In forex trading terms this can have a couple of different meanings. Firstly it means that as long as you use a proven system, you should always stick to this system even when things go against you. For instance many undisciplined traders will start increasing their stakes or taking unnecessary risks after a few losing trades but this nearly always ends in disaster and should be avoided at all costs. The disciplined trader has to accept that losing trades are inevitable.
Similarly the disciplined trader has to be in control of their emotions at all times. It should be pointed out that even a consecutive sequence of winning trades can be dangerous to the undisciplined trader. For example whenever you start making lots of money and see lots of winning trades, it’s all too easy to get overconfident and to start thinking you’re invincible. As a result you may then start taking additional trades because you’re trading with profits that you can afford to lose, but again this will also end in disaster in most cases.
The final attribute you will need is adaptability. The fact is that it’s very hard to develop a trading system that generates profits in all market conditions. Indeed sometimes a previously profitable strategy can suddenly stop working when there is a change in market volatility, for instance. So the profitable trader has to be prepared to adapt their trading system to market conditions otherwise they may struggle to continue to make money in the long run.
So to sum up, the three main attributes that you need to become a profitable forex trader (in addition to a profitable trading strategy) are dedication, discipline and adaptability. Not everyone has these attributes of course, but if you do then you are very lucky because you have every chance of becoming a successful trader.
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