Trading the markets offers great opportunities for making profits, and it is each trader’s responsibility to improve and develop the skills and discipline necessary for successful trading. Through years of learning and understanding the markets, I met some traders and friends who over-complicate the process of trading; they always blame others for their losses, and don’t take the responsibility for the outcome they make. Sometimes, I hear words like “the market is our enemy,” “no winning in Forex,” “machination,” “the mystery of Forex,” and so on. In my opinion, these assumptions are wrong; the secret of success in trading is you and your only enemy is you again.
In fact, trading is like any other profession; we first learn the basics, and then expand to more sophisticated and in-depth understanding in the field. Thus, there are no skilled professionals in any field who have not reached a level of expertise without hard work and substantial experience. Any professional field requires a commitment and willingness to go through success as well as failures. Actually, the failures can be the greatest teachers, we should Study the failures to develop into a better trader.
- First, traders should have a firm knowledge, and understanding of the markets. There are some traders who enter the live trading without a firm understanding of what trading process involves, and this leads inevitably to early failure.
- Having a well-defined plan is very important to ensure successful trading, as it gives the trader the guidelines, rules, and direction to consistently achieve his objectives. So, it is one of the best tools that help us maximize profits and minimize risk and losses. If we trade without a well-defined plan, we will find ourselves on the seesaw of losing and winning, and this will lead to failure.
- Having a Sound money management strategy, and adherence in following its rules, as money management is the most important element of trading plan. Mainly, it acts as a risk control and allows traders to trade through periods of drawdowns and losing streaks without blowing out their accounts. In case of poor money management, there will be counterproductive, not only the obvious loss of financial resources, but also the emotional stress that is placed on the trader. This stress can be manifested in the form of depression or negative behaviors such as fear, anger, and disappointment.
- A good trading approach: traders must have a good technical strategy which helps them to deal with the market, and detect the available chances to trade. Trading strategy should be simple, easy to understand, and easy to use. Also, it is important that it has obvious rules and conditions for entries and exists that facilitate the process of trading. Traders have to take time in practicing and training themselves to use trading strategy in order to make it familiar and effective. Besides those tools, there are several psychological and behavioral reasons that make traders succeed in trading such as:
– Patience and Perseverance.
– Adherence, discipline, and commitment to the process of trading.
– Adherence to a set of trading rules.
– Maintenance of a positive attitude and confidence.
– Learning from previous mistakes.
– Taking Full responsibility for the whole process of trading, and stop blaming the market.
– Getting used to forgetting last trades, win or lose, and waiting for the next trade.
– Assessing risks and then profits with no greed.
– Thinking in terms of probabilities, rather than emphasis on a trade outcome.
– Depending on yourselves in trading.To trade successfully and professionally you must learn to follow your trading plan, which includes a plan for money management. We must learn to think in terms of probabilities but not certainties, and accept the fact that losses are as much a part of trading as wins. We should stop blaming others, and take responsibility for our mistakes in order to solve them. Adherence, patience, and discipline will be a key to a successful trading career. Remember, experts are made not born. Follow your success.