Let’s face it: Money is the reason why most of us get into forex trading to begin with. Of course, it’s not about money just for the sake of money. Money is not a goal in itself, but it is the means we need to achieve our goals, including things like freedom to choose when and where you want to work, or when to go on a holiday, or retire early. We all have our own ideas of what being financially free means for us.
So, we can naturally conclude that when people start to learn forex trading, it is to make money from it. The next question then becomes, what personal characteristics should you have in order to stand a fair chance at becoming a profitable independent forex trader?
Let’s therefore dive right into it with the top 4 characteristics that all successful forex traders share.
1. Being analytical
The first thing you will need to ever become successful at trading is to have an analytical mind. This means being able to figure out some simple math quickly, understand percentages, and calculating things like risk:reward ratios.
However, the good news is that all of this can be learned. And once it is learned and you’ve practised it for some time, it’s really not that difficult anymore!
2. Being disciplined
The second quality you should have to become a forex trader is to be disciplined. The former US Navy Seal and now popular podcast host Jocko Willink likes to say that “discipline equals freedom,” and we couldn’t agree more. Becoming a profitable forex trader requires strong discipline, but it is rewarded with an amazing feeling of freedom for those who succeed.
As with most great things in life, there are few shortcuts to success in forex trading. But in forex trading, one shortcut does exist: Learning from someone with experience, for example through a forex coaching program or a mentorship under an experienced trader.
3. Don’t be impulsive
Trading is also one of those activities where being an impulsive type of person can get you into some trouble. That’s because the only way to succeed in trading is to do proper preparation and planning before each and every trade.
Jumping into trades on the fly without following a fixed process will over time lead to failure in trading, and frankly has more in common with gambling than trading. Not being impulsive is therefore something most traders have in common with each other.
4. Don’t be overly emotional
The last thing that almost all successful forex traders share is that they have learned to control their emotions, or at least separate their emotions from their trading. As a trader, you should be an expert at managing risk.
Managing risks means being able to stay calm and make rational decisions even while facing the risk of significant losses. Or being able to make another trade following the exact same strategy just after you have lost large amounts of money in the markets.
For many people, this is simply too difficult. And it is absolutely understandable, because it goes against human nature. But as a trader, you must learn to control it.
With these things in mind, spend some time to think about how your own personal characteristics matches what we have described here. If you think you have what it takes, you might want to consider taking the next step towards actually becoming an independent forex trader. After all, accepting the challenge is the only way to really find out if you can do it.
To get started today, simply click the button below to sign up for one of our free forex trading seminars in Australia this year. Good luck, and we look forward to seeing you there!