The Qualities of a Forex Trader

Qualities Forex trader

When a person starts trading currencies, they enter a world of two opposing forces; first the company they trade with is like a vulture flying over them, ready to help them lose all their money, and second the radical swings of the market created by speculation allows the select few to make a profit. That select few rise above the rest, because they contain qualities that can be summarised as follows; they are thinkers, humble, patient and are able to keep emotions out of their trading. All these are easier said than done and hopefully this site will encourage many to stay away and some to enter the arena who will actually earn money.

The worst thing that can happen to a novice is that he earns money on his first few trades. This gives him a sense of power, invincibility leading to carelessness and before he knows it, all his money is gone. It is far better that a person studies the underlying principles and ideas, gets to grips with the issues, studies specific currencies, then having gained an understanding of the situation and a methodology, cautiously starts to make small trades.

Trading currencies is profitable for the companies that offer it because those that try to speculate have to overcome their natural instincts. I think it is fair to say that the majority of traders are men and it is their basest emotions that destroy them:
1. Men have a strong urge earn money, yet the person who goes into trading with this aim will, ironically, probably lose it all.
2. Men are aggressive, but aggression has no part in trading.
3. Men are very sure of themselves, but in the market, it is only the graph that is sure of where it is going!

Also, intelligence is important, but trading itself can involve long, tedious waits for the right indicators to be in place. This can drive the intelligent mind insane and the trader can end up seeing things in the graph that aren’t actually there. Theoretically, women may actually be better at trading than men, but I suspect that they have their own problems to deal with, and please forgive my ignorance on the subject!

Searching and learning about yourself is an important stage in approaching currency trading. Men pride themselves in being unemotional, but the market teaches them that their entire existence is dominated by emotions that they never knew existed. The market grabs your soul and casts it into the dust and then tramples on it without mercy. This leads to one of two results; either a new, more mature person rises from the dust, or a destroyed soul pitifully limps along, occasionally trading with the hope that one day money will come from it. The mature trader creates personal habits that are alien to him naturally. He has an instilled discipline, learning from the string of trading errors that he has made in the past, aware that a string of new errors wait for him in the future.