Traits of a Successful Trader

Before we go into all the different traits that make up a great trader, we want to remind you that no one possesses all of these characteristics. The most successful forex traders develop the most that they can out of these traits and continue to improve them as they continue to learn more about succeeding in the forex market.

The following list of characteristics defines what many believe to be a successful trader. These traits will help anyone looking to trade forex and by knowing what they are you can begin to refine the traits that you may already have.

Characteristics to Success

  • Good traders seem to have control over trading emotions – they don’t get overconfident after a win or too down because of a loss.
  • Successful traders don’t think about prices as “too high” or “too low.” Prices are just numbers. If a trade size makes you uneasy, it’s too large and you should scale down.
  • Successful traders never get emotionally attached to a market or trade. Remember, the market is not out to get you.
  • They don’t panic. They evolve by making simple changes to their trading program and not by tying to revamp everything they’ve ever done.
  • Successful traders don’t flinch when making a decision. They are able to make the call exactly when the time is right.
  • Good forex traders treat trading as a business and not as a hobby or a game to play around with. It is something to take serious, since it is investment with your money.
  • Successful traders stay somewhat physically fit. To many it is something that helps them make clearer decisions and keep a fresh mind.
  • Successful traders don’t trade when they are emotionally distraught or under a lot of stress.
  • When a good trader is trading, they make sure to keep a quiet environment so that they can make sound decisions without any distractions.
  • Many of the best forex traders come prepared for anything during any given trading session. They have a plan and they stick to it. However, they are always prepared for whatever may come at them, which allows them to make spur of the moment decisions with a good judgment instead of being too surprised.
  • They always trade only with finances that they can afford to lose. Not saying that you are going to lose it all, but forex trading is speculation and there are no guarantees.
  • When it comes to their trading program, successful traders spend just as much time on improving attitude and money management as they do on their trading method.
  • Professional traders keep a low profile and don’t need to discuss their personal trading with others.
  • The most successful traders understand they can’t control the market and simply let it do its thing. When they do that, they focus on taking advantage of it at the right times. Traders that often lose attempt to control the market.
  • Many good traders know the few times when it is the best decision to trust their own instincts override a trade.
  • Successful traders are consistently reviewing their trades and learning from them.

One thing that we recommend doing if you are new to trading online forex is to start off with a demo account. Almost all online brokers offer demos and you can trade without spending money just to practice some of these traits and really learn the market a little better before investing your own money.