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What Makes Someone Successful in Trading Online?

What Makes Someone Successful in Trading Online?

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With anything in life, becoming successful is what everyone wants. Whether your success means accumulating money or being happy, it means different things to different people. But with foreign exchange trading, there are different tiers to success, and these tiers are achievable, even for the novice trader. The thing about trading is that you need to be able to think on your feet and make decisions at the drop of a hat. This will ultimately help you to be a successful online trader. However, there is more to it. Let’s unpack what makes someone a successful online trader. 

Do your research

Learning will always be an excellent way to understand anything. Spending that time ensuring you have covered your bases is a good thing. The internet is a wonderful place to gather information about trading. Here, you will find info on trends, how the markets are performing, and even advice from fellow traders. It all boils down to research. This puts you in a great position because your decisions will come from a well-informed place. You must keep in mind that not every piece of research is going to be valuable. You can weed out unnecessary information. For example, if you stumble upon an article claiming to predict the outcome for different markets, that’s a red flag. You should also read up on successful traders and their tips on how to become a successful trader. They come packed with information you might need for the future.

Learning from mistakes

Successful traders learn from their errors very quickly, which does not necessarily mean you are losing out. Mistakes can be trading at the wrong time or believing there is only one formula or strategy to trading. This is common among novice traders. However, all is not lost. Even the most skilled trader can make errors but eventually learns from them. A good tip here is to record the mistake you’ve made and to analyse what went wrong. From here, you can set up ways to improve on them. You can also look at other tips and tricks from traders, as well as mistakes they’ve made previously. This should give you great insight into what to do and what not to do.  

Find a trading approach that works for you

There is no single way to become a successful online trader. While there are many ways to get you on track, no single way can guarantee success, and this is what makes trading so exciting. Financial author and futures and hedge funds expert Jack Schwager says, “The very first thing one should figure out is the right trading method that suits you, as there is no right size common approach that can guarantee success to everybody.” Sound advice every trader must follow. Here are a few things to consider

  • Are you after fundamental or technical trading?
  • Are you in it for the long or short term?
  • What market will you trade on?
  • Which currency pairs will you use?
  • What will your strategy be? 

Try to have an edge

Following the normal way of doing things won’t offer much success in trading. You need to have an edge. The idea is that no matter your trading approach, you need to have an edge to set yourself apart from others. You can completely solidify your trading approach and set yourself up for success, but your success might never happen without it. Successful online traders know this very well. They consistently develop a skill that sets them apart from the rest. This ties in well with the confidence you have in your trading approach. Essentially you need to believe in what you are doing and couple that with your special skill. According to Schwager, confidence generally comes once you start making money.

Be disciplined 

No matter what path you follow in life, discipline gets people where they need to be. Do you have to work in the morning? You set an alarm. Do you want to get fit for a marathon? You run every single day and eat healthily. That is discipline. With trading, you must follow strict discipline when implementing your trading strategy. According to Schwager, those who have discipline are more likely to become successful traders. 

This is often the scariest task in trading, and we get it; we’re eager to adapt and change our personal strategy while updating our skills. Keep in mind that there will be trades that will throw you off your game. If it’s part of your strategy, then keep going even when they are scary. Your discipline will pay off in the long run. On the other end, your gut might tell you that this is not the trade for you, but you’ve heard that it offers the best reward. If your gut and strategy do not allow for the trade, rather don’t go for it. This is discipline, sticking to your guns, and consistently working towards your goal.

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