Best forex brokers in South Africa have some of the successful forex traders in the world. What sets the successful forex traders from the rest of the pack? They do the following:
They think in terms of the risk
It is some of those small things that happen in life which tend to generate bigger improvements. The concept to think in terms of money risked is quite important as it applies to the forex trading. It is a simple concept which is extremely simple which can have a large impact on your journey to become a top forex trader.
It is hard to come across a forex trader who does not calculate their risk before they place on a particular position. You might think that it is a statement which is obvious but you will be surprised by the number of traders that don’t think about the amount of money that they risk before they open a trade. It is due to the fact that, they use a percentage of arbitrary in calculating the risk like the one or the 2% of their account balance for forex trading.
You need to think about the last trade that you performed. Were you able to define the exact amount of dollar that you were to risk before you placed on the trade? Or did you decide to focus on the number of pips and your account percentage at risk? The convenience which comes with the forex position size calculators’ size had made it so that most people don’t consider the dollar amount that is being risked. It is convenience that causes a large oversight.
You need to bee interested in both the amount being risked as a percentage of the account balance. They are not the same. 2% of 5000$ is 100$ meaning 2% and 100$ in respect to the 5000$ are the same. But when it comes to the way the mind is perceiving the two figures, they are at different ends of the entire spectrum.
Pips and the percentages will get you to a certain place but you need to think in terms of the money that is risked against the percentage or the pips. It is because the percentages and the pips do carry a lot of value emotionally. So when you go defining your risk on the trade as a percentage alone, it is able to trigger the side of your brain which is logical, leaving the side that is emotional to search for more.
When you calculate about the risk in form of a percentage alone, you will define the risk but you will not be accepting it. Once you are able to convert the percentage to the amount in dollars, your mind will try to visualize the value of the 100$. It is what will enable you to be able to determine if you are ready to lose the 100$ meaning, is the setup for the trade good enough to risk the 100$?
It will be easier risking the 2% without having to accept the potential lose as it doesn’t seem to carry any emotional value which the money does. The best traders in forex are aware of that and that is why they ensure to define the risk in terms of a percentage as well as the dollar amount.
They are not in need of the money
There are not a lot of guarantees when you are trading in forex. But one sure guarantee is that, there is no successful trader in forex who trades for money required for use tomorrow. What it means is that, when you trade of forex to be able to gain a particular amount of money within a specific period is not recommended.
It doesn’t imply that you cannot generate the money of your income via forex trading and do it as a full time venture. Such a statement would contradict having successful forex traders in the market. What it means is that, a successful forex trader doesn’t requires to win today in order to pay some bills tomorrow.
There is no single trader who can able to sustain such type of pressure and be able to be profitable consistently. In such an environment, it will bring out emotions which are destructive like greed and fear. It is a top which will take you back to the notion about the best forex trader not trying too hard.
If you require money from trading so that you pay bills, the odds are that you will end up being under pressure to win. When you are under pressure to win, you will mostly certainly be able to try very hard instead of leaving the market to do the lifting which is heavy.
You need to ensure that, you trade on forex with money which you are ready to lose. You should never trader with money that you have to provide for your family or to pay bills. At the same time you should never allow the money to be the main reason why you are doing the trading. With a desire for money might be what attracted you to the forex trading initially, but you don’t have to allow it to be your only desire.
You have to embrace challenge, focusing on the journey in becoming a successful forex trader and the money will continue to follow. Money should become a product of good trading at the end of the day.
Forex traders that are successful know when it is time to walk away
It is about taking a brief hiatus and walking away never again to trade on forex. All forex traders who are successful know when it is time to walk away and be able to take a break. The ones who truly have a passion regarding trading for forex know how it is hard to walk away from the market. Still it might be necessary so that you become a trader who is successful.
To walk away can be difficult especially following a trade. It is due to the fact that our emotions are high and often get the best of the traders. But that is what exactly makes that to be the best time to walk away and it will be beneficial to you.