Forex Mentor: 7 Habits of Great Forex Traders

Concept of reaching success through habits.
To reach success, you need good habits.

What is a habit and why does it matter?

  • Overeating
  • Neglecting yourself
  • Being a workaholic
  • Chewing your nails
  • Negative thinking
  • Being late
  • Blaming others
Momentum of Developing Success
Image of a man drinking a giant glass of red wine.

Habits Every Forex Trader Must Adopt to Succeed in the Market

Habit #1: Know your reasons for taking every trade

  • Clear strategies/trade setup that you should follow
  • Your profit or loss targets
  • How to identify trading opportunities on the charts
  • How frequent you will trade
  • Which currency pairs you want to focus on

Habit #2: Don’t get frustrated over missed trades

rear view of a stock trader tearing out his hair from despair

Habit #3: Always put a stop-loss

Habit #4: Don’t take revenge over losses

  • After a frustrating loss, take a break and distance yourself from it.
  • Once you calm down and clear your head, analyse what caused the loss. Did you not trade according to plan? Does your system need adjustments?
  • Don’t overcompensate in an effort to recover your losses. Limit your risk by taking smaller positions. Also, accept the fact that it will take time to fully recover.
  • Make risk management a habit. You have more chances of being profitable if you control your losses better.

Habit #5: Maintain a trading journal

concept of journaling with Forex charts on the foreground
  • Date and time of trade
  • Currency pair (e.g. EUR/USD, USD/JPY or USD/CHF)
  • Action/Strategy used (long or short)
  • Risk (how many lots, stop-loss)
  • Profit potential (Do you have one or multiple profit targets?)
  • Result (profit/loss)
  • State (What are your thoughts and emotions? Did you execute it correctly?)

Habit #6: Maintain a clear mind

  • Meditate to improve your mood and cognitive function. This is also one way to cultivate mindfulness, so you’re fully aware of what you’re about to do and the corresponding consequences.
  • Deep breathe to bring more oxygen to your brain. This will help you stay alert and think more clearly.
  • Talk to someone or a trading buddy to clear your head and get someone else’s perspective. A family member, friend, or another trader could also help find solutions to challenges you might be facing.
  • Write down your thoughts or worries to get rid of them. Once you’re calm and thinking clearly, revisit your list and use it to develop a better, emotion-free trading system.
  • Get organised so you’re not distracted when you trade. While you’re at it, come up with a plan for moving forward if you’re in a less-positive state.

Habit #7: Pay yourself consistently

How do you develop these habits?

--

--

--

Asia’s fastest-growing brokerage firm and disruptive force in the trading industry. Delivers unparalleled fund safety and world-class trading education.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

This Is Why You Have What It Takes to Be a Savvy Investor

Mortgage a powerful tool in acquiring your dream home

The Best Budgeting Apps For Saving You Money — Mint Alternatives

Credit Card pin number?

Roadmap to 4K dividends in 2022 — March Update

In Short: ESG After COVID-19

Why Managing Your Emotions Is the Key to Building Wealth

Why Having a Home Inspection Is A Must When Buying Your First Home, with Andrea Wilson — The First…

Why Having a Home Inspection Is A Must When Buying Your First Home, with Andrea Wilson - The First Time Home Buyer Podcast - Episode 12

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Fullerton Markets

Fullerton Markets

Asia’s fastest-growing brokerage firm and disruptive force in the trading industry. Delivers unparalleled fund safety and world-class trading education.

More from Medium

What to Avoid as a Beginner Investor

The Best Beginner Investment Strategy

How It Pays To Own A Bit Of It All

How to get Rich — Golden Rules and Principles