There are no single formula for being successful in trading. You need to have patience, resources, education, and a systematic approach to be successful trading forex. Here are the top 4 characteristics of successful forex traders.
Before beginning to trade, you should align your goals with the instruments and markets. You should be careful about the time frame. If you trade off a five-minute chart, it will ensure that you are comfortable without any overnight risk. After choosing a timeframe, you need to systematically apply a trading methodology.
There are different approaches to trading. Some traders like to buy support and sell resistance; while others prefer buying or selling breakouts. Some rely on indicators like MACD and crossovers. You should choose a methodology and see whether it works or not and refine over time.
You should have a positive mindset when you are trading. You should have patience. You should wait for the prices to reach levels that your system shows. You should be disciplined. You must have realistic expectations. Sometimes the market makes a bigger move than you anticipate.
Various instruments trade differently. This depends on the major players and the reason they are trading that particular instrument. Hedge funds are, for example, motivated differently than mutual funds. You should pick up some currencies or stocks and chart them in various time frames. You should then apply your methodology to all of them. Then observe which instrument and time frame is most responsive to your system. This is how you discover a personality match. Repeat this exercise regularly to adapt to changing market conditions.
The only way you can make a profit is by the proper management and execution of the trade. You should know how to control your risk.
Trading has no right or wrong method. You must take small losses quickly and not wait for the bigger losses.