Essential Element Of A Successful Currency Trader

Courage under Stressful Conditions When the Outcome is Uncertain

Confronting with courage under tense conditions

Armed with all foreign exchange trading information will not help unless you have the courage to take risk in buying and selling currencies and risking your money. When you put your money at risk you have to be confident that you are going to make profit our of it. Its not easy at all to press enter key when your real money is at risk.

Anxiety and fear will always accompany you. You will only make money if you have enough courage and will to act. When a fireman enters a burning building to save life, his own life is endanger but he does it anyway and accomplish his mission. If you can put yourself to the role of that fireman you can be successful forex trader or currency trader

On the other hand, when you acquire enough courage, soon it will be convenient for you to take risk and start making money in forex trading or currency trading. Sometime you grow over confidence and start losing your focus on all risk involved

Begin by knowing yourself first. Ask yourself that are you the person who can control his personality, like overcoming emotions and shortcomings carryout trades in currency market, most of the times under tense conditions? Ask yourself that are you the type of person who is overoptimistic and vulnerable to take more chances then desired? By looking inside yourself you can overcome the defects in advance, otherwise they may result in failure or huge loss. An immense loss can end your career in forex trading or currency trading or delay your attainment until you can raise extra capital.

The incapacity to begin a trade or close a losing trade can establish severe psychological problems for a trader moving forward. Being aware of these obstacles, you can acquire excellent trading habits.

In trading foreign exchange the problem does not end just by “pulling the trigger” In fact what comes next is far more problematic. The next challenge is staying in the trade. Once you enter the trade of trading foreign exchange or forex you can leave the trade early once you find it not working. Many people who find success in non trading projects find this notion hard to carry out.

For example, real estate tycoon make money by selling property during the boom periods and buying during bad times. The strategy is to hold on the capital during bad times and invest that capital during boom period. In foreign exchange trading, the currencies are in long term persistent, directional trends and when you really want to invest and make good use of it, your equity will be worn out before currency comes back

The other strategy is to stay in a trade that is flourishing. The danger is closing out while gaining, without any appropriate motive. “Fear is your worst enemy”. Fear will work as a hindrance in your subconscious mind. You will not be able to work unhindered. Some fearful thoughts come into your mind, like “what if news comes out and you wind up with a loss”. In reality, if the news comes out in a currency that is showing upward trend, than there are higher chances of news being positive than negative.

Mostly your fear is untrue. Don’t fight your fear, accept it like a fun and move towards your task at hand that is shaping your way out plan based on real price measure. As Gath says in Wayresworld ”Live in the now man”. Don’t worry about what could be, work on what is in hand by studying your chart and shaping your way out point as genuine and realistic.

Some times you close in a winning position, because you find it boring, its not moving according to your expectations. For example in a hockey match, some time a key player is out of the ground temporarily for a breather, when he comes back in the game, he is a serious threat to the opponent, because now he can gain more yards. Your situation is like that hockey player. Once you take a breather after gains, the next move should be more gains.

To be successful in foreign exchange trading or forex trading or currency trading you have to be brave and patient. If you are impatient and hasty you will have to adjust yourself according to the requirements of the trade. You will have to be confident to risk your money. You need to acquire knowledge base to be confident in decision making.

Gain knowledge through patience, study and focus.

Many enter the trade but mostly fail because of the fact that they don’t have the proper money management skills. They believe that all they need is know how of few charts, technical indicators and finance. Most of them come up losers with few weeks or months, in the beginning few of them are successful, but it take not more than a year before they are flatten. Only few with good money making skills, patience, study and very well focused are successful traders.

Chances of success is only insured if you can acquire knowledge that requires hard work, study, dedication, and focus. Also learning all aspects of the trade like fundamental and technical. Forex trading or currency trading does not come up without hard work.

In currency trading you do the hard work and surely you will succeed.