Get to know the valuable and unique traits that drive sustainable growth of successful forex traders
To become one of the successful forex traders in the industry, there must be personal development that should eventually evolve into a beneficial trait. Aside from executing a great strategy, optimizing daily work ethics and personal traits can boost a forex trading career. With the possibilities of success and profit, focus on building a strong set of traits to stabilize and enhance performance.Long-term and highly profitable, traits can define the output and progress of a forex trader. These advantageous traits can be developed through years of experience and drive for personal growth. With a reliable trading strategy, make sure to follow through and execute with the help of profitable traits.
The Big 5 Personality Traits
In modern research, psychologists believe that there are 5 personality traits. Studies show that an individual’s traits are responsible for their actions. According to VeryWell.com, the big 5 dimensions of personality can determine a person’s behaviour in certain situations. Learning these categories of traits can help a forex trader jumpstart personal awareness and growth. Based on extensive research since 1949, here is a quick look at the Big 5 Personality Traits:
Openness to experience describes a person who is creative, adventurous, curious, imaginative or insightful.
Conscientiousness describes a person who is reliable, organized, goal-oriented or thorough.
Extraversion describes a person who is sociable, excited, energetic, talkative or assertive.
Agreeableness describes a person who is helpful, compassionate, cooperative or sympathetic.
Neuroticism describes a person who is anxious, moody, tense or emotionally erratic.
Through the observations of these traits, most people are able to classify and study their personalities. For better trading performance, knowing your personality can determine whether to avoid or enhance a certain trait. Though conscientiousness seems to be the most reliable trait for forex trading, the key is to create a balance between all 5. This will lead to profitable trades, smarter calculations as well as a well-rounded forex lifestyle. To get to know your main personality traits, take The Big Five Personality Test.
Valuable and unique traits of successful forex traders
Successful forex traders build a rewarding set of traits that enable long-term positive performance. Through these traits, every decision made creates an integrated trading plan aimed for success. With years of experience in losses and wins, find out what worked for successful forex traders. Here are the unique traits you can apply for your own trading system:
Never complacent
Complacency is one of the biggest causes of a static career in forex trading. It usually comes after feeling a great sense of text with your current profit without the drive to optimize. The reason why it is important to avoid complacency is that it hinders growth and limits the possibility of increasing profit.From learning new techniques to studying economies, successful forex traders always adapt and optimize their systems to keep up with the changeable forex market. In Raymond Firetag’s interview with Money Show, he shares the importance and effectiveness of always being a student in forex trading. Despite already being successful, he still devotes time to study his preferred currencies and enhance his trading performance. With unpredictable market conditions, always monitor your strategies and be the type of trader that is never complacent.
Applies smart perseverance
All success stories involve overcoming failure. In a forex trading career, setbacks and losses are only temporary if you become smart and diligent about moving past it. In fact, the most common and valuable experiences in forex trading deal with learning from mistakes.In any job, applying smart perseverance has much to do with personal sense of ambition and being wise about it. For inspiration, here are a few great examples of applying smart perseverance:
Brian Acton used to work for Apple and Yahoo. But after years of being rejected by Facebook and Twitter, the software engineer decided to build a cloud-based messaging app called WhatsApp. Today, he is worth 4.1 billion USD.
At that time, she sent her books to twelve publishing companies and every one of them rejected her manuscript. Today, J.K Rowling, the creator of Harry Potter, is now one of United Kingdom’s richest women. The Harry Potter series is now worth $15 billion
Born on 1847, Thomas Edison experienced failure 999 times before he successfully invented the lamp. “I have not failed. I've just found 1,000 ways that won't work.”
Cautious in nature
Being cautious in nature is a beneficial trait especially in a forex trading environment. Despite how profitable your current system is, it is always better to leave room for risk control. To be a successful forex trader, you need to set realistic expectations and only risk the amount of capital you are willing to lose.Successful traders as well as smart investors always put in capital with room for caution. Being known as the the father of value investing, Benjamin Graham expresses an important principle of investing - which is to always invest with a margin of safety. His principle is a good trait to practice because it offers better results as well as minimizes liabilities for every trade. This practice makes way for damage control due to sudden market changes. According to how much risk a trader is comfortable taking, having a margin of safety is a trader’s protection if the trade does not do well. Yohay Elam of Forex Crunch advises to risk only up to 2% of your account.
Investigative and analytic
The key to becoming a successful forex trader is to be investigative and analytic of every activity. This means to spend as much time on education or research as following your trade. Be systematic in your daily analysis and check all the facts and figures. It is important to be knowledgeable and analytic about what you are trading.Be investigative and analytic to refine your knowledge and skills in management as well as execution of a trade. In an interview on eFinancial Careers, Lex Van Dam talks about how he has set up his own trading academy to share his advice on trading smarter and building intellectual capital. In order to make better decisions, he shares that traders should investigate and experiment different scenarios before trading.
Consistent in methodology
Successful forex traders have the ability to stay consistent in today’s volatile forex markets. With so much aspects of forex trading to think about, being a consistent trader will bring about positive outcome no matter how small it may be. First put in time and educate yourself to the type of forex trading strategy that works for you. Once you acquire your preferred methodology, stick with it.To become a proficient forex trader, consistency in strategy and trading performance will eventually lead to better profit to loss ratio and a more defined edge. Rimantas Petrauskas of EA Coder talks about consistency as one of his top 3 trading habits in Forexreferral.com. Being one of his biggest mistakes in forex trading, Petrauskas shares his story on how sticking with his unchanged strategy allowed him to recover losses compared to when he tried to modify with new trading rules. For better long-term profitability, remain persistent with your trading strategy despite any sudden setbacks. After testing a solid trading system, stay consistent and avoid improvising.
High patience and discipline
Forex trading does not offer a quick and easy road to profit. If there is one common trait that successful forex traders have, it is the amount of patience and discipline needed in every aspect of the job. By setting realistic expectations from your strategy, you can make use of practicing patience and discipline when waiting for indications or for better market conditions.
“My strength is I rise every time I fall, and I only keep moving forward. Perhaps I watched too many Rocky movies as a kid, but it’s served me well.” - Chris Capre, Writer of Trading Price Action and founder of 2nd Skies Forex
Patience and discipline are unique traits to acquire because it greatly depends on your mental well being and determination. According to Chris Capre, patience is one of his best habits especially when it came to facing difficulty when trading. He did not believe in making quick profits and took his time to learn when to get in or get out of a trade. Without any background in finance or economics, Chris relied on his discipline and diligence to go through obstacles to get to where he is now.
Work on your habits and traits for successful trading
“Profitable traders are an elite group of individuals who have learned through solid education and experience what it takes to make money in the currency markets.” - Sam Evans, Trading Academy
With time and hard work, there is great opportunity for anyone to become one of the successful forex traders in the industry. With good forex education and a goal-oriented outlook, make sure to practice good habits that lead to beneficial traits. You can boost career growth, add value to your skills and optimize trading performance.
Long-term and highly profitable, traits can define the output and progress of a forex trader. These advantageous traits can be developed through years of experience and drive for personal growth. With a reliable trading strategy, make sure to follow through and execute with the help of profitable traits.
