Do You Really Have What It Takes to be a Forex Trader

Do You Really Have What It Takes to be a Forex Trader

1. Are you prepared to lose?
This is the one question you need to ask yourself. If you are prepared to lose, then the next thing that needs to be done is figure out the way to deal with those losses. You need to integrate the losses into the trading plan. Then again, you need to ask whether you know the art of risk management in order to make sure that you lose the amount you are comfortable losing. Manage your risks well and trade less frequently to pass for a forex trader.
2. Do you have the patience required for being a forex trader?
A successful forex trader wins over the temptation for trading by patience and discipline. Ponder over whether you have the patience or you lack it. Money should not be lost foolishly as it is a limited resource. Restrict yourself from over trading as it is hazardous for both professional and an amateur trader. Wait for your trading edge and favorable market situation. Wait for the trade setup that has been predefined in the trading plan.
3. Do you know the art of controlling your emotion?
If you are crying like a one-year-old baby after a trade loss then simply quit trading. Trading is not meant for the ones who are emotionally weak. Trading is not at all for those who are constantly wallowing and fluttering in the market without any good reason. If you cannot check your tears on losing then you should have better monitored your trading actions prior to trading. Trading is the test of self-control. Control your trading actions and stop being over emotional over a loss if you want to pass for a professional forex trader.
4. Have you mastered the trading strategy?
Not risking more is a healthy sign, but a little healthier is not overindulging in the market by mastering the trading strategy. Trading strategy, trading plan and trading journal must all be mastered to the fullest.
5. Are you a disciplined trader or a gambler?
If you’re trading in a disciplined and self restrictive manner, then trading is for you. Organization and discipline are indispensable part of good trading. Do not succumb to the temptations. Trade only when you have your edge. Some traders trade under compulsion and incur significant losses. To avoid this refer, to the price action plan and apply your trading strategies as well.
If you want to examine your effectiveness as an efficient trader then go for demo trading. This will give you a crystal clear idea of where you stand as a trader.

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