To succeed in trading you need several innate traits without which you shouldn’t even start. They include discipline, risk tolerance, and facility with numbers.
Developing a separate analytical framework to manage currency risk is a good starting point, but left there this is clearly not enough. The second theme therefore is that currency market practitioners need to adopt a rigorous and disciplined approach to managing currency risk or currency strategy.
A good trader knows from experience that over a period of time he may engage in more losing trades than winning ones.
Most traders have been exposed to some aspect of what we call Fibonacci trading, mostly in reference to Fibonacci price retracements.
Success in trading, as in other high-performance tasks, requires the ability to master your fears and other emotional and behavioral responses to stress so that you can develop workable processes for profitable results in the face of the uncertainty, change, and complexity of the markets.
Regardless of your level of economic or market knowledge, the only way to learn how to trade the financial markets successfully is to know the basics and practice using them regularly. We often hear clients say they already know the beginning lessons and believe that the intermediate and advanced lessons will make them successful traders. What we’ve found in practice, however, is that most individuals lack a complete understanding of the basics.
Congratulations to the many traders who have traded 50, 100, and even 200 plus trades in a row without a loss on live trading accounts while using stops to protect their margins.