That’s a serious question…?
There’s a lot of mystery which surrounds the market stating that there is no single method to winning. It’s how one adjusts the trend and trusts their abilities while trading. Still not clear is it…? Have a cup of coffee with a smoke and think of the FX market as an ocean. You are the surfer who wants to ride the waves successfully. For that you need to maintain proper balance, have determination, patience as well as the right equipment. In lieu to all these, you also need to pay attention to your surroundings. Forex Traders rating the best do that and so there’s your there’s your starting point.
There are more timeless principles which a Forex trader rating the best from the rest follows. So, keep following.
These Men Eye for Little Increments as their 1 Year Goal
You surely must have come across ads showing how a trader miraculously turned $4,000 into $40,000 in just 90 days or something. Well, they have and congratulations to them, but honestly speaking those are kind of traders who are guaranteed to blow their accounts in even quicker time.
Top traders never zoot up to the heavens, rather they always keep their feet on the ground and keep their goals realistic.
‘A 50-60% yearly return implies too much risk- the kind which can turn your account into a ruin.’ That’s what Forex traders rating right up there believe. Rather a 20-30% yearly return and a max of 5-10% of drawdown is what they believe to be rational.
Stats will always garner heaps of eye-balls and prompt plenty of ‘wows and that’s amazing’s’ but it’s always short-lived. Bottom line- Currency exchange is not gambling and the FX market is not the Las Vegas arcade. Realistic goals always account for stability in trading and long-term successful traders always stick to little incremental returns as their p.a. goals.
Such Men Ignore Noise and Wait On the Side Lines.
FX is a market which has abundance of participants. Trading goes on all day and so there’s bound to be a lot of noise.
An Aussie flour exporter getting payments in Euros aims to hedge on upcoming appreciation on AUD via shorting 300 lots on EURAUD. Or
Some US burger chain wants to expand into NZD for financing their fresh operation and hence wants to change USD into 10 million NZD.
There’s your noise and they will always happen in this huge a market. Due to all these occurrences, prices of these currencies always keep changing. Those with top ratings traders Forex don’t give hoots to all these. Instead he remains on the sideline and waits for a logical market reading to indulge in a trade entry.
These Men Avoid Risks of ‘RISKS’
Trade size is very important and the best of the lot know it all too well. So they always keep a watch on their % of risk. Something like a 0.5-1% risk on every trade is right. You will come across many claiming to be risk-enthusiasts but in most cases those are the ones who come up with dirt than gold. The best always save something to live another day and that enables them to diminish drawdown damage.
These are some crucial things which Forex traders rating the best do differently than regulars. Again there is no specific rule for trading currencies. It’s your choice now in which direction you prefer going… The question still remains- what does the best do differently…? The Answer- Not Enough as Compared To You, But Just Enough to Win More against You!
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.