A trader at once hedge fund manager, Jarratt Davis, in one of the post on its website tells how his experience during a trading career and his intercourse with various institutions and investment top traders who work in it. It turns out many hidden things which we consider as eligible to prepare for the journey of our trading career. Here are some of them:
1. Continue to believe in the ability of self despite the Loss Streak
Each trader has its worst moment. So did the people who made the trading as a profession and actually feel the success in the world of trading. While many approaches including losses and time loss streak coming in, that's when it becomes a test that will distinguish between "successful traders" and "trader's new found success".
True successful traders already steeped in how the business is moving and came to the stage assume a loss as a reasonable incident. Even already know this to be something that had to happen in his career as a trader. True successful traders will still have confidence in firm trading system that would return to the top of the performance in time later. In contrast to the new traders who feel successful. This point is often a turning point for the beginner and amateur traders to return to question about the reliability of the trading system.
2. True successful traders do not have time restrictions to enter the market
Although no trading scheduled every hour or day or week, but each day a true successful forex traders always follow the development of the market movement. Unlike the new traders who felt successful, entering the market with a basic pattern of time. Any clues or signals of large and small that arise at any hour, day or even downloads always made traders opportunities to the amateurs to get into the market.
The next criterion is when the true successful traders are having an open trading positions. They never expected that the profit target will be achieved.
Kok strange huh? New this time there are people who dont like to his expectations granted. Not so, but they are more likely to focus observe signals that emerged after a position opened, do continue to exist with the support that position. They believed that the position had already been opened in the market will not be able to influence the price movement in the market, so it is ready to "revise".
3. True Successful Traders are very cautious of keeping Risk
A true successful traders think about minimising risk, whereas the new traders who felt successful calculate how they could maximize profits. A true successful traders always try to keep and limit the losses of no more than 2 percent of the value of your account in one of their open positions. They also provide risk limits with tight maximum of 1 per cent for the market entry opportunities.
To support the risk management like that, they use a wide stop loss strategy. Why is this so? Because with great value ranges or wide, they have the opportunity to make an evaluation. What is the position that they are already open in accordance with the direction of the market movement and signals that emerged after a position opened? Well, if summed up their position is wrong, then they can quickly close the position in order to minimize the risks and losses.
4. Successful traders Only True Target on an annual basis
A trader who is very good at keeping the funds dikelolanya, first focus is security fund investor, and then talk about profit. One is by applying the calculation maximum losses experienced by no more than 10 percent over the span of a year. And turn a profit in the range of 25-40 percent. In contrast to the new traders who felt successful, contended that making a profit of hundreds of percent in recent times trading course is the way trading is good and correct.
5. True successful traders are focusing on Fundamentals
Forex market not just speculators. Every day, countless business transactions that are not based on speculation. Whenever possible, a company doing large amounts of foreign currency transactions. For instance, suppose there is a company in country X with desired to expanding into country b. in the process turns the X factory have to buy currencies of countries B number of 50 million dollars.
Such transactions can affect the price action on a short timeframe, but the movement of the price action that is random and scheduled no this has nothing to do with the fundamentals of a currency and even could be contrasted with the bias direction of price movement. Amateur traders can easily be swayed by that sort of price action, thinking if it was the beginning of a great movement for no apparent reason. But professional traders will not heed it and wait until there are enough logical reasons before opening trading position.
Hopefully some of the above factors will help the process of trading we finally got a consistent profits in the long run.
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