Most Forex investors don't understand the reality that their personality will have a very high effect on their trading career. Whether you are a discretionary trader who takes all his trades manually or you use automated Forex strategy trading systems, your personality will affect your trading success.
Understating how your unique personality can affect your revenue can sometimes be very challenging as most Foreign exchange programs, schools, and tutors don’t educate you on how to do this. In this edition of my Forex strategy trading tips I am going to teach you 4 ways to discover your trading personality.
Uncover your risk threshold and your risk boundaries:
Each and every trader has a different risk threshold. In my trading career I have run into traders who would not tolerate risk at all and they would choose to have a money manager handle all of the trading.
At the same time, I have met folks who had a high risk threshold and therefore traded 5% to 10% per trade (not what I would recommend.). Determining your risk tolerance will assist you to understand the money management strategies you need to apply to your trading. Figuring out your limits will allow you to never take irrational judgements because you are trading beyond your limits.
Find the proper trading style for you:
Your trading style should be determined based on your personality. One example is, if you are a patient investor who can hold a position for a few days, then swing trading might be for you. Maybe you like a lot of excitement and fast paced trading, in this case you might want to look into scalping, and so on.
By selecting a trading style that helps you to create a balance between your trading career and your personality you will increase your chances to become a extremely lucrative Fx trader.
Find your own motivators:
A motivator is the reason or reasons anyone for acting or behaving in a particular way. It is also the reason why we all do things and take action. In Forex, people normally have two motivators. First, some individuals are motivated by the monetary rewards they can receive from trading Foreign exchange. Second, some people become inspired because of the self satisfaction they can get from trading the markets.
Finding your motivators will allow you to better plan your approach to the market. The best way to find your motivators is by asking yourself: “What motivates me to trade? Why do I want to be successful at trading?”
Define what will indicate that you are out of your comfort trading zone:
You comfort trading zone is the moment when you feel completely in sync with the markets and you are able to trade the markets profitably, keep your emotions out of the picture, and make money at ease.
Determining how to measure if you are out of your comfort zone can help you to know when to go back to the basics and especially stop trading.
A few good examples of indicators that you are out of your comfort zone include: a certain amount of days without a winning trade, you find yourself taking irrational trades, or your stress levels from trading are abnormal.
Remember, learning how to successfully implement Forex strategy trading is a on going process and the more knowledgeable you became the better you will perform as a speculator.
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