A Forex trader in the strictest sense of the word is a person who has finished the necessary schooling, passed the licensure examination to be certified as a trader and exercises the profession on a day-to-day basis. In a general sense, a Forex trader is any person who regularly trades in the foreign exchange market either by himself or with the aid of a Forex trader/broker. But the question is “who is the best Forex trader?” This article will answer that question by providing important aspects of a Forex trader’s rights and duties.
The best Forex trader is educated, licensed, and has tons of relevant experience. Getting proper education ensures that a trader’s foundation is deep and sturdy. This allows the trader to make use of various strategies and indicators in order to make the best trade possible. Getting a license ensures that the trader get to enjoy the full privileges of a Forex trader while at the same time assures third parties of his/her competence. Experience not only increases the efficiency of a trader but also boosts mental preparedness and confidence, which are necessary in making decisive plans of attack.
Knows Trade Characteristics
The best forex trader knows his or her capabilities and limitations. Hence, he or she specializes, either in a particular currency pair or in a particular aspect of Forex trading. Of course, some will disagree but the reality is Forex trading has become a popular profession. Hence, there is an oversupply of traders. Instead of competing with everyone else, the best traders find a gap in the market and then establish dominance over that gap.
Accepts the Reality and Influence of External Forces
The best Forex trader knows that the market is not always dictated by economic patterns and indicators. Hence, he/she looks out for external forces (i.e. politics, history, demography, etc.) that can unduly influence the trade. Always keep in mind that whatever external factors considered or taken advantaged of must be within the bounds of the law or within a gray area.
Gambling is Never an Option
The best Forex trader deals only after extraordinary diligence has been exercised in determining market conditions, factoring in external forces or political realities, reading market history or trends, etc. He/she realizes that Forex trading is a science that can be predicted up to a certain extent and not a gamble that is entered into with eyes closed.
Knows When to Give Up
The best Forex trader knows that he/she cannot win them all. Of course losses incurred are justified and never made due to incompetence or lack of due diligence. And the same mistake never happens twice. After a loss, he/she analyzes the trade, determines what went wrong, and then charges the loss to experience.
The best traders make full use of technological advances, especially those that pertain to mass media and telecommunications. This way raw data and filtered information reaches him/her as soon as it is available, or at least at the same time as the competition. This means television, internet, smart phones, wireless connectivity, social networking, etc.