Then the 10 habits of successful Forex investor.
1. Using a Trading Plan
No successful Forex trader would last long without a good game plan for each of the operations performed. While it is possible to have successful trading from time to time without following a previous plan, eventually, this will not work and end up losing money.
Successful Forex investors have specific plans of attack for each position, including:
- Position Size
- Point of Entry
- A Stop / Loss (S / L) well defined (much are you willing to risk)
- A Take / Profit (T / P) well defined (the gain you are looking for)
A successful investor in Forex is also flexible when it comes to getting your winnings, sometimes closing their positions before the T / P if satisfied that the market will move more in their favor. At other times, you can extend rather take profit if the market so allows. But what a successful investor ever does is move the stop loss of the original point unless it is in favor of the position, and in order to ensure some level of profit already achieved to date.
Never move the stop loss unless it is in favor of the position to ensure profit levels
2. Anticipate Major events
As in chess, the best players are always thinking about trying to anticipate future moves his opponents. An investor will always be successful in Forex pending future events and expectations that they can generate. Based on these considerations, they build their strategies and will be ready and prepared to operate at the time of the events, and not drift like the rest.
3. Staying Flexible
Successful foreign investors do not engage emotionally with their positions. They recognize that this is not to be right or not about making money. They adapt to the latest information and are willing to close their positions quickly if events suggest so. At the same time, are open to fresh opportunities that may appear on the market and are ready to react.
Being prepared also means maintaining sufficient margins to open operations in the moment.
4. Be prepared to operate
A successful investor is always best prepared in a market that is open 24 hours and subject to constant and events anywhere in the world. A successful investor should be prepared to: The economic events of the next week to two weeks: To know the results of previous reports and what is expected for coming.
Scheduled speeches: Know who will speak (central bank or finance officers), who said the last time and is expected to say this time.
Meetings of the central banks to determine rates: Have a timetable for the following meetings and what the market expected to decide in each case.
Meeting of financial leaders, such as the G7 finance ministers in Europe: It is important to know whether the issue of currency will be played in any future meetings.
Liquidity conditions: It is essential to be aware of times when market liquidity may be affected, either at certain times of day when they close some markets, holidays, end of month, etc.
Unexpected: It is essential to be enrolled in services that provide alerts about news or unexpected events, to assess potential opportunities or risks.
5. Earrings Be Important Technical Levels
Even for those Forex traders who do not follow strictly the technical analysis is essential be aware of the most important technical levels of the pairs that follow, such as reversals or Fibonacci support and resistance levels.
6. Follow the Trend / Trading in Ranges
Successful investors know whether the market is a definite trend or moving between ranges. If the market has a well defined trend, a successful trader always try to follow this trend and inverse operations to put it. In this sense, they hope to have corrections trends, ie that prices will return to points of support or resistance key to enter advantageously with the flow and expect this to be summarized. Likewise, if they determine that the market is moving between ranges, taking advantage of the situation by selling at high points and low points in buying range.
7. Focus on a few pairs
Many successful investors focus on only one or two coins to perform all operations. This will get you in these markets in terms of price levels and behavior. It also makes it manageable amount of information and news that have to monitor. Above all, they recognize that each currency pair has different personalities, and are able to adapt according to the situation.
8. Protect Profits
To become a successful investor in Forex, you should take profits on a regular basis, either partially or leaving a position to reach the T / P original. The important thing is that once an operation is winning, the investor should focus on not losing that profit in order to achieve more money. At about the importance of managing a clear plan in conjunction with the flexibility that allows us to close positions when appropriate.
9. trade with a Stop / Loss
Every successful trader loses money from time to time. What makes them successful in the long run is that their losses are relatively small compared with the profits from its successful operations. The absolute key to this is to keep a S / L in absolutely each and every one of the operations. Nobody likes to lose money, but the best investors are able to accept this as part of the cost of doing business. And the only way to accept this on a regular basis is to keep losses small. This is one of the most important habits to master.
10. Observe other Markets
Non traded currencies in a vacuum. Smart investors keep an eye on a routine basis in the other world financial markets and oil prices and gold for example. In many cases, there are significant correlations between these markets and a few pairs in Forex. Keep abreast of this information will provide the investor with an even broader and enhanced, allowing you to find confirmation or support decisions made.
