So, you want to be a Forex Trader? Do you believe you can be one of the successful traders here in Dubai? We look at the top 6 traits/attributes written below; if they apply to you, you might stand a chance! Then again, luck has always been part of the game… What do you think? We summarise what we believe you need to make it in the UAE as a successful trader. Clicking on this page will give you all the additional info to get you started.
Trading is both science and art. The idea that success comes overnight could not be further from the truth. It takes a long time to learn all the ins and outs, manage your risk and refine your skills and yourself as a trader. It includes recognizing mistakes and adapting to changing market conditions. Even if you have made some money trading before, it does not necessarily mean that you will consistently make money trading again the next time around.
Often, traders would look at their losses and say that they should have been stopped out earlier or moved the stop loss to a break-even position etc. In this case, perseverance is exceptionally critical. Traders need to know when to step back, re-evaluate market conditions and be willing to go through some losing trades before having a winning trade again.
Many successful traders were not naturally inclined to become successful in trading. However, most did develop discipline either by themselves or with the help of other more experienced individuals in the industry. You need to follow your own rules when trading, no matter what happens around you. Discipline also means that you need to learn to take a loss and move on. In the end, it will give you more opportunities to take advantage of other situations that present themselves throughout the day.
Self-control is an integral part of the trading discipline because if you cannot control your emotions or adhere to your pre-determined rules, chances are you will make a mistake that could be devastating, financially speaking. Even worse, if you do not have a stop loss set up, those mistakes could destroy your account before you even know what happened! If no one told you already, never open discretionary trades without having a proper stop loss in place first, as it is just like throwing money down the drain.
4. Money Management
Money management is critical when trading as it can determine your profits or losses. In this case, you need to adopt the proper money management system to ensure that you have enough capital to trade through those inevitable losing streaks and give yourself some margin for error. Nowadays, traders are being subjected to more stringent funding requirements by their brokers. It means that funds need to be available for them to make trades. It is incredibly critical not only because of what I mentioned above but also because you might come across days where all markets move against you at the same time!
Patience is another attribute that comes with self-control and discipline since they are interrelated. If you cannot control your emotions during market conditions that do not favour your position, chances are you will give in to those emotions and make an impulsive decision. Do you know what they say about those decisions? It’s best to go back to the drawing board (i.e. research) and find out how to improve yourself as a trader.
Last but not least, motivation is important because it gives traders the drive and determination to succeed as forex traders. Without this drive, even if we possess all other traits needed for trading success (especially discipline), we do not stand a chance of succeeding. Think about it: If there is no desire to become successful or achieve something tangible from our efforts, why bother? We would probably be better off pursuing a hobby that we actually enjoy doing or simply going on with our lives without worrying too much about things we cannot change.