Top 10 Habits of Successful Forex Traders

forex-traderWhat makes a great forex trader great? Here are the top 10 habits that all great forex traders have in common.

#10 – They Take it Slow

Successful traders know how to take things slowly. They are patient. They know that being a millionaire in forex doesn’t mean hitting the jackpot overnight. It means gradually building up their war chest, losing a few trades but at the end of the day, its still a win.

#9 – Make a Journal

You don’t know how important making a journal is until you create one. I used to believe that making a journal was a waste of time. Until I have no other choice. After a depressing loss, I created this blog and this served as a journal. And to my surprise, my trading got better and better as I can now explain what went wrong and what went right. Its important that you explain it to yourself what went wrong. And making a journal will make you think about it. And I can always look back to previous trades.

#8 – They Love To Read

Great traders love to read. Ask them what’s their favorite book about forex trading and they’ll give you a dozen recommendation on one subject alone. I think its innate to every trader that they are also curious and inquisitive. Always absorbing knowledge that could help them be a better trader.

#7 – They Ask Questions

People don’t learn just by reading. It takes a working mind to ask questions. You know that a trader is a good one when they ask every question. What’s the entry point? Whats the idea behind that strategy? What’s the drawdown? How to trade forex and develop a working system? What if I try this one? What if I change this one? The questions that leads to other questions that would further ones knowledge. When you ask questions, you receive the wisdom of years.

#6 – They Test

Not only do they read, they question what they read, and they also test it. There’s no better way to become a better trader but to be so objective in any idea that you test it thoroughly before accepting it. Too many people fall in the category of accepting a system or a belief just because an authority figure told them. This is a sure way ticket to disaster. A great trader know how to think for themselves. If they are not sure, they will test it. Test your trading system, your money management and anything you are not sure of.

#5 – They Share Their Knowledge for Free

Haven’t you notice that people who are really good at their craft share their knowledge to the world for free? There’s also a reason why sharing is excellent to become a better trader. When you share your knowledge, you learn more.

#4 – They Setup Goals

$5 a day? Not bad. $100 a day? Great! No matter how big or small, great traders have goals. Because goals measures our success and progress. And makes us think harder in order to achieve the goal faster.

#3 – Know When To Step Back

Overtrading has killed more accounts than any other in forex. You think that you can earn more money when you trade more? This is not like a day job where you get paid the more you work. In forex trading, its better to work less. Got consecutive losses? Try to step back a little. Go out and have fun for a while. Then comeback recharged. The stress of overtrading is not worth your while. That’s what our goal is for.

#2 – Reward Yourself

A few occasional trips and travel, nice gadgets and eat out should be a good reward for a job well done. Remember that you also need to have fun. And if you achieved that goal that you are so patiently trying to achieve, maybe you should get a month long vacation as well.

#1 – Have Other Passion

I have read a lot about great traders. And there seems to be a lot things that they are in common with each other. One of which is that, they have other life passions. Trading for them is a mental stimulus. They love the challenge of trading. But its not what defines them. Having a passion in life would not only remove the stress of trading for you, but will also empower and improve your life.

Do you agree or disagree with the 10 habits? Do you have a suggestion on what should be a better fit in this top 10? Drop your comments below.

  • Mark Abeleda

    Best post ever!

  • ForexPhil

    Thanks Mark!