As with any market, there must be losers as well as winners and some people have the attributes needed to win whilst others follow actions which prevent them from making money. If you’ve ever wondered what makes a winner in the foreign exchange market then read on to pick up some of their top tips.
Give equal Credence to wins and losses
A winning trader focuses as much attention on their losses as on their wins, a losing trader by comparison tends to give far more credence to their wins and overlooks the losses. In fact it’s the risk to profit or loss ratio that winners really spend a lot of time assessing.
Winners stick to their system
A winning trader does not blow it all out the water because of one big loss. They analyse the loss and act accordingly. Those who tend to lose a lot of money on forex markets change their system every time they make a loss which in reality just leads to more lost money.
Master your system
Whether you have developed your own system or borrowed a tried and tested one you need to own it. Winning traders know their systems inside out; they know what to do at every turn and when they can take that big risk.
Take the small losses
Accept small losses gracefully, they will happen and they will happen often, but in order to win you must lose on occasion. If you have managed your risks like all winning traders do, then you are prepared for each loss and it won’t affect your ability to stick with the system.
A winning trader is one who has realistic expectations. In the same vein as many walks of life, big dreams can hold you back. The traders who think they are going to turn a month’s wages into a life changing amount of money are far more likely to lose than those who know they may increase that amount by a modest percent.
Winning forex traders are the ones who are consistent, focused, sensible and realistic. Those out there making plenty of money on foreign exchange markets are looking back over both their wins AND their losses and they are following a system they known inside out. Winners manage risk effectively and take small loses on the chin frequently in a bid to win more money in the long run.