Being in the 5% club means making consistent gains on your forex account. This is done by building an account through small and steady gains and building it at a rate in which you can control it. In this article, we will share a few attributes of profitable forex traders which we believe are critical to their success.
Unfortunately, 90-95% of forex traders fail to ever make it to a point where their winning trades outweigh their losing ones. Often times, the traders who fail to make it to the 5% club are those who expect to quickly make money through trading or attempt to flip accounts in a short period of time. Traders with this mindset will usually lose money quickly and burn out fast.
The first step to being successful in trading is creating a profitable strategy. This is achieved by spending significant time backtesting and researching forex trading strategies. The next step, which is often harder for traders, is to actually follow through with that plan. In stressful times traders have a tendency to change their approach to avoid losing a trade. This usually leaves traders in a worse situation than they would be in if they had stuck with their original plan. Make sure you've backtest your strategy and have the confidence to stick with it!
Becoming a profitable trader won't happen overnight. Trading successfully requires patience, consistency, and grit. There is no fast pass to success in trading. Trading requires lots of backtesting and strategizing to develop a plan which works for you. Your success in trading is a personal journey that only you can earn. Trading mentors can guide you on the path to success but in the end you are responsible for doing the work.
Profitable Forex Traders Love What They Do
If your only interest in trading forex is to make money, you probably won't make it too long before you burn out. As we mentioned previously, becoming a successful trader takes grit. You will likely lose many trades before you'll win some. For some traders, it takes years before they're consistently making more than they are losing. To be able to make it through these harder times you have to be motivated by something other than monetary success, because it won't always be there. You have to truly love trading and love the process.
Yesterday, the Federal Open Market Committee (FOMC), the Federal Reserve’s policy-making body, implemented yet another 75 basis point interest rate hike. While this move was perfectly in line with market forecasts, Chair Powell’s comments following the subsequent press conference, in which he discussed the FOMC’s new set of economic projections, were significant. He continued to […]
Statistics Canada released a surprising new batch of inflation data this morning: month-over-month CPI failed to meet market forecasts, declining by 0.3% instead of the anticipated 0.1%. Rather than being an outlier, the other measurements of CPI mostly followed suit, as both year-over-year Trimmed CPI and Median CPI likewise failed to meet expectations. Trimmed CPI’s […]
At 9:30 pm Eastern Time tonight, the Reserve Bank of Australia (RBA) will be publishing their latest round of monetary policy meeting minutes. While there is a chance that their intentions could come across as more hawkish than expected, they currently have little reason to be. Despite relatively low unemployment at 3.5%, steady GDP growth, […]
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