Seven Habits of successful forex traders

List of 7 habits of successful forex traders:

1. Be a constant learner

One thing that all the best and most successful forex traders have in common is an ongoing curiosity and the love of learning new things. So, if you want to be a successful FX trader, you need to constantly learn new things about trading and the market.

2. Develop a trading plan

You‘re probably aware of the saying ’failing to plan is planning to fail‘. Though it might sound cliché, it’s true and it‘s a very important component for trading success -Entry and exit levels,Position size,Stop-loss level,Take profit level,Indicators to use to confirm your entry and exit.While having a trading plan is important, it’s also equally important to have the discipline to stick to and implement it.

3. Develop a risk management strategy

Every successful trader will tell you that trading is all about risk management. And its true, your success as a trader will depend largely on how robust yourrisk management is. At its basic level, risk management can be boiled down to a few components.Here are some items to consider when building your risk management strategy:

How much capital to allocate per trade？

How much capital to risk per trade？

What is your stop loss level？

What is your take profit level？

How much leverage to use per trade？

One of the best words of advice for traders is to preserve your capital. By protecting your trading capital, youll be able to trade the next day.

4. Start with a demo trading account

While most people want to rush into trading to have a taste of success right away, it‘s advisable to start small and slowly. This is particularly true if you’re new to forex trading where one of the best things you can do is start with a demo trading account.Using a demo account brings several benefits, such as:Opportunity to familiarise yourself with the trading platform and different trading products.Start testing different trading strategies without committing real money up front,Gain confidence in placing trades

5. Scaling positions

There are benefits of scaling in and out of positions - primarily psychological ones.For example, if you have a large trade running that is already deep in profit, it might be beneficial for you to book some of the profit, making it easier to manage the position. You may also use scaling when entering positions. Finding the right entry point can be difficult and you might end up second guessing yourself or wishing you entered the position at a better spot. With scaling, you take some of the pressure away as you will be entering the position at various points.

6. Strong technical analysis approach

Beginners often think that they must choose between using technical or fundamental analysis. This is not correct, as many traders use a combination of both in their trading. Even if you are a fundamental trader, you could find value in being aware of the key technical levels (for example, to find better entry/exit points) or learning technical indicators (to help you identify when a market is overbought or oversold).

7. Trade your edge and stick to it

It can take a long time until you find your trading edge, but once you identify it, it is worth building on that strength and harnessing it. An edge is not just a magical trading system that outperforms all the time, but can also be a particular skill set you have (for example, scalpers are skilled with numbers, time management and handling pressure).