As the best forex brokers in South Africa, there are things which are done differently and that is what you ought to learn as you take your journey through being one of the best forex traders. The best traders in forex do the following things:
They normally utilize prize action
Each forex trader who is successful utilizes price action in one way or the other, in form or shape. It doesn’t mean that they utilize price action in the same money that you are going to use, but they are utilizing some price action form as part of their strategy for trading.
Whether the forex trader uses the raw price action or just uses it in identifying the key market levels, the price action plays an important role in any form of strategy. The reason behind it is because; it is able to serve as a psychology representation within that market.
It is what gives you some insight in the mind of the rest of the traders. To have some ideas of where you are to sell and buy orders are located in the forex market is important to becoming one of the best traders in forex. It might strengthen any strategy of trading by being able to provide areas to watch for potential entries and profit targets.
Trading forex with no use of price action form is like trying to drive the car while closing one eye. It can be done but it is not recommended. So even if you are out there developing a strategy that is based on the indicators, it might behoove you in learning regarding the price action. If for nothing else, it will be able to give you a foundation which is solid from which you can develop and design other strategies.
They have a trading edge that is well defined
There is a lot of talk on online about the need for forex traders to be able to develop an edge and go ahead and define it. To be honest, there is a lot of alarming. No wonder there are so many traders who struggle in understanding what the edge is all about and how they can be able to come up with theirs.
So what is a trading edge and why does it matter? And edge is everything regarding the way you are able to trade which helps put the odds in your favor. It is known to be a combination of the time frame that you trade, the strategies of price action you utilize, the level which are key that you have identified, the risk of the reward ratio, and other factors. It is known to include your post and pre-trading routine.
How do you go about handling losses? What do you do when you are able to win? These are all things which could make up your edge of trading. Practically, you could think about the reason why Brazil was able to win more world cups than any other nation in the world. Was it the shooting or the passing?
Brazil had an entire package; it was their shooting, passing, movement of the ball, set plays and everything in between that gave them an edge over other teams. Your trading is the same. Although there are dozens of the factors which combine to make up the edge, you don’t have to master them all at once. You also don’t have to master them all of them to start putting the odds that are in your favor.
It is best to in mastering one set of factors and then slowly expanding to others to ensure that you define your edge. Apart from this being a progression that is natural, it is the best way to be able to learn. Have you ever come across the saying of a jack of all trades and the master of none?
By trying to master a lot of the factors at the same time, you will be setting yourself to become a good but not a great one at a lot of things. Instead, master one thing at any given time. Be an expert when it comes to having to identify the key levels. Then try expanding your skills which are set by ensuring that you learn the way of determining the strength of trends
After that, you have to ensure that your focus is set on being able to learn regarding pin bars. The three things are all that you need to be able witness a rise in your curve of profit. You have to continue expanding your skill set in this particular manner and later, you will be able to have your own trading edge.
The main thing is to tackle one factor or two factors at most at any given time. To use a slow as well as steady approach will get you on the road to become forex traders who is successful within no time.
Successful forex traders do not try very hard
You don’t have to try too hard in order to make it in life. This could be apply also to other ventures in life but with forex, it is an exception. Forex traders who are successful know that to try too hard is a sign that, the is something that is not right. It is different from having to study hard. Being a new trader to forex, to study the market is something that is highly recommended.
There is no way you will spend a lot of time to learn the ins and the outs of the various pairs of currency or the way to draw level keys. The harder you try to be able to learn the particular topics, the better it will be for you.
But to try to make a strategy of trading to work will end up leading to behavior that is destructive like having to trade emotions. At the same time, to try hard to find opportunities for trading is a great way of losing money on setups which are subpar. Good trading needs to be effortless.
When starting trading on forex, you might spend endless times studying the setups then at the end, make up a different setup and it all happens because you are trying too hard. Once you stop to over-analyze the trade setups and try to make them to work, your profit curve will automatically rise. You will be spending less than 30 minutes daily to look for your charts
Though it might sound counterintuitive, to learn not to try very hard is one thing that might just change your career in forex trading for the better.