Top habits of highly successful Forex traders

Successful people don’t achieve their goals due to luck. They’ve intentionally adopted certain positive practices and habits that have allowed them to realize their success. Wondering what the best habits to adopt in Forex trading are to become a successful trader? Let’s have a look at 5 of the most successful habits followed by top Forex traders! 

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Keep your expectations realistic

Forex trading should never be considered a ‘get rich quick’ scheme. There are wins and losses on a daily basis, and the sooner you come to terms with having realistic expectations, the sooner you will make more calculated trades and keep risks in perspective.

Setting process goals, rather than outcome goals, for your trading will help you set realistic expectations, especially following the S.M.A.R.T. method, as these goals are 100% within your control. 

Implement a trading routine.

Sticking to a daily routine and treating the practice of forex trading as if it were your business instead of a hobby or job should give you a feeling of being more in control and composed, which can help you make better decisions and identify opportunities.

Something like sitting down and researching all the relevant Forex news and updates every day for a set period of time before starting your day is a habit that will set you apart from the average player. Consult an economic calendar to be ware of and anticipate upcoming economic news that could impact the markets. Your broker will typically provide this free, Easy Markets being one example. Consciously reviewing your results at the close of the day is also vitally important.

Follow your trading plan

Before you risk any capital, it’s best to have a reliable trading plan in place and follow it. Your trading plan should be like a roadmap that you don’t trade without. It can be simple or complex, depending on your trading experience and knowledge, but it should always guide you in your trading.

It should be a well-researched document that outlines rules for you to closely follow when trading the Forex market. These rules could include various entry and exit strategies, the method for opening/closing your trades, as well as money management rules to follow to protect your capital.

The only reason to adjust your trading plan is if it clearly isn’t working or if you’re revising it to improve the profitability of your strategy.

Focus on protecting your trading capital

Forex trading is obviously not without risk, and protecting your capital doesn’t mean you’ll never lose any of it. The idea is to take calculated risks, backed by your research and routines, that fit your trader’s profile.

One of the most important ways to mitigate risk is to diversify your portfolio and trade with a stop-loss. A stop-loss order will allow for a specific price at which your trade will be automatically closed out by your platform when the market doesn’t go your way.

Another money management tip is to only risk a certain amount of capital per trade depending on your specific goals, your capital, and your risk appetite. 

Control your emotions

Keeping your emotions in check when trading the Forex market could save you a bundle in missed opportunities and unnecessary risk-taking. Psychology plays an important role in trading and the wider market. It’s important to appreciate that it’s very difficult to remain completely in the zone all the time, and you’ll need a few personal strategies in place to increase your better judgment and reduce the risk of rash decision-making.

One way to better control your emotions is by adding discipline to your trading, so always stick to your trading rules. These rules should include some boundaries for managing yourself in times of panic, greed or over-excitement, like taking a walk or having a deliberate break between trades to give you back a fresh outlook.

You could set yourself a rule to stop trading for the day after 3 or more consecutive wins or losses, for instance.

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