What are the necessary qualities to succeed in Forex trading?
If you’re one of the trading savants, who discovers forex trading (by accident or design) and immediately figures it all out, becoming profitable within weeks, whilst building up your small account to a large account, without suffering much in the way of losses and experiencing no drawdown, then look away now, this article will be of zero use to you. However, if you’re a relative novice, who’s working hard at your craft, suffering the usual growing pains, but still hasn’t become profitable, then it may be worth reading on, particularly if you’re losing motivation and a bit of heart.
Trading is a lonely, isolated world, it’s all about you when you’re retail trading. There’s precious little help available for coping with the many trials and tribulations we put ourselves through and suffer. Your spouse and closest relatives, your friends and contacts, will be able to offer up very little in the way of support, other than platitudes and you often feel as if you’re ploughing a lonely furrow, in a boggy field, with a heavy yoke on your back. But here’s the thing; it will get better and you will succeed, if you persevere.
Now we’re not ones to promote a “can do” attitude for no reason, as despite the fact maintaining a positive mental attitude is essential throughout your career, it can only take you so far. In fact some of the most dead pan, cynical, arguably miserable folk you can ever meet, actually make it as great traders. That issue of perseverance is a concept worth concentrating on, as it doesn’t necessarily invoke images of an individual with untold self-confidence and self-belief. Rather it suggests a: quiet, efficient, determined individual, who’s in it for the long term and won’t be derailed at the first evidence of resistance. Is that you? Then good news, you’re likely to succeed at trading.
Other characteristics that generally indicate whether a novice trader has the necessary qualities to succeed at forex trading might include:
• Ability to listen
• Attention to detail
• Curiosity
• Patience
• Realism
• Realistic ambitions
• Modesty
• Humility
These are traits far removed from the view we may originally have regarding successful traders. We often believe that success in trading, requires possessing a super human and mysterious talent for trading. It often comes as a surprise, to the inexperienced, that trading success has more in common with the characteristics previously listed, as opposed to some mystical talent. But that recognition should deliver encouragement that anyone can become a trader, if we develop the necessary traits. If you don’t already have the qualities necessary to potentially succeed in trading, then you can easily develop them, these are characteristics which could be labelled under the subject of self-control and self-discipline, not talent.
Our ability to listen can be improved, allied to that should be the ability to read. There isn’t enough time in the day to take on board all the wise opinion out there, which can quickly correct our poor trading habits, but we have to search it out. Attention to detail and how to apply forensic analysis is also a must in our industry, without it how can we judge our results and project our future profitability? Modestly and humility appears to be a recurring theme with successful traders, most have been humbled by the market and remain modest in relation to their ability. Being realistic; having realistic objectives regarding our trading ambitions and not becoming seduced or influenced by outrageous claims of profitability, ensures we remain grounded. Whilst being a curious individual is essential to our progress; we operate in a fascinating and highly creative business, the untapped potential is huge.
If you recognize yourself in any or all of the above paragraph then you will undoubtedly have many of the necessary qualities to succeed in trading. The irony is that those skills listed are in fact the types of talents required, over and above some mysterious intuition. It may take more time to become profitable than you imagined at the outset, but if we control our risk, maintain our discipline and concentrate on developing and improving these skills, then we’re giving ourselves every opportunity to thrive.
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