open demat account

Trading is one of the most challenging professions. However, becoming a professional with qualified professional training in this area is more accessible. So what is left for us to do? – Study the experience of those who have already achieved significant and outstanding results in this business, and learn from them: in words, actions, books, and video seminars.

Also read How to Start Options Trading in India with Rs 10,000?

When the trade is going well, it feels great. When the work goes wrong, it can feel like a nightmare. Entire fortunes are made in weeks and lost in minutes. These examples repeat themselves every time a new generation of traders enters the market. If he wants to succeed, it is better for a trader to learn from these experiences and not repeat others’ mistakes. It can be achieved by asking the right questions and finding the correct answers through rational observation and logical conclusions. Trading is a challenging way to make money, as, for example, Bollywood’s live streamed casino games and similar entertainment. 

Every millionaire in the international currency market is a newcomer to the past, someone who came into the trade from ordinary life. None of them was born a trader with rich experience and could achieve success only by working on himself for many years. To be on the list of those who made a fortune on Forex, they had to go through the hard way of trial and error, education, and forming their trading strategy. Nevertheless, today their names are known practically to every trader.

Features of the successful trader

Who is a successful trader? The most successful traders keep working on their skills daily, honing them and learning from their mistakes. The secret of a successful trader is simple – you need to trade consciously and constantly know, improving your trading. Unfortunately, most traders, both beginners and more experienced, ignore the simple rules of profitable trading, which sooner or later leads to losing their Forex deposit. Why does it happen?

  • Firstly, more than half of Forex traders have come to this market hoping for fast money or adrenaline. Another question is whether such a desire can be “melted” into a healthy desire to get a stable income from trading and to become a professional. Unfortunately, few people can reach this stage, and we can call them “the most successful traders” with complete confidence.
  • Secondly, after several failures and often after the deposit’s first drawdown, many traders give up and do not trade at all. After some time, the trader finds the money again, but in his head, there is the feeling of the first failure, doubts, “Can I do it?” etc. In such psychological discomfort, it is difficult to trade on the plus side – we have a second sinking (loss) of money. The successful trader will find out why he lost money the first time and try not to do it again. Thus, every mistake benefits him in the long run.

Let’s look at a few simple rules designed to improve your trading and make you a successful trader.

A successful trader always keeps his thoughts and emotions under control.

Every thought results in emotion, and every emotion results in action. If you are agitated, if your thoughts are far away from Forex, close the terminal and have a rest or solve a problem.

If you are overcome by negative feelings like anxiety, resentment, or anger – try to understand their cause and eliminate them. You will shorten your life and increase the risk of losing your deposit, which will lead to more negative emotions. A successful trader always tries to control their emotional state. Clear rules for opening and closing transactions contribute to this – after all, when there is an algorithm (trading system), you do not need emotions.

A successful trader always plays according to the trend.

It’s trite but true. If you open with a trend, an error will only cost you a little money. The most successful traders consider the trend direction and look for the entry points in the movement direction. The beginner’s open position as the hand goes and suffers losses when the market goes against them.

The most successful traders make money by “riding” the trend. Many traders use “share,” i.e., they add to open positions in case of the price moves successfully (in fact, it is better to “share” on pullbacks). Thereby the total profit increases.

The successful trader remembers that the trend never unfolds instantly, and there is always time to exit a position if there are signals for a trend reversal. You should not average (buy more if the price falls, or keep selling if the price rises) if the market moves against you – you will only lose your money faster.

A successful trader lets his profits grow and quickly cuts his losses.

The beginner quickly closes a position at a few points of profit, and the successful trader allows profits to grow to the planned 30-50-100 points, after which the work is completed. Then, the beginner waits until the position is over from the deep drawdown; the successful trader closes the part quickly if he sees that the situation is not in his favor and looks for new entry points.

The most successful traders do not deal with piping; their trading is always more long-term, although it can be limited to one day or even a few hours. A successful trader can wait a long time for a favorable moment and then clearly enter the position at a predetermined price with a pre-calculated lot. Such trading is devoid of doubts: there is a signal – the action begins. Open waiting and planning is the key to success. Don’t let losses pile up and let profits grow – and you’ll look at trading in a completely different way.

Sometimes it’s hard to admit that you’re wrong and the position is losing. But think about it, if you wait to close it, further drawdowns with a known outcome are possible. So take your time with the market to prove you are right – fix your losses, and the next position might be better.

 Oh, and only sometimes try to be in the market. Precise, pinpoint actions – the profits will accumulate, and you’ll save a lot of nerves.

A successful trader enjoys his work.

If trading stresses you out all the time – reconsider your position; maybe it’s not your thing. The most successful traders enjoy what they do. Profits are also fun, but the process of trading is more. Don’t set yourself the goal of making a lot of money. Instead, try to understand the market and feel it. Work on a demo account or a small deposit. Listen to yourself. Following this advice, trust that you will open a lot of new things. And profit is only a tiny part.

To stay updated with the Latest Stock Market news, download our app here!

For editorial purposes, contact news@tradebrains.in

Start Your Financial Learning Journey

Want to learn Stock Market and other Financial Products? Make sure to check out, FinGrad, the learning initiative by Trade Brains. Click here to start your financial learning journey with us. And do not miss out on the Introductory Offer!!