Forex traders are among the most skilled people you can ever meet. They need to be excellent in technical analytics, mainly in terms of analysing price movement on a chart to help determine potential future action. Forex traders also need considerable money management skill, or else they’ll start to lose trades. Lastly, they need to keep their wits about them at all times; unnecessary distractions are always out the question.
A forex trader can have all three of such traits, but he’ll never be successful without this single personal quality: consistency.
The Backbone of Forex Trading Success
Ask any forex professional out there –be it an experienced broker or traders such as those from Sakura FX Trading — about the importance of consistency in the field, and they can talk about it all day. Forex trading is much like daily life with a predominantly routine-based nature, though the routine itself is critical for success.
The most successful forex traders are always consistent and well-prepared. If they come in looking to be spontaneous, they will lose money. It’s all about sticking to a tried-and-true forex trading plan and executing it consistently. Eventually, a well-prepared trader will realise that time works to his ends. Those who ‘run-and-gun’ with their trades believe that rules are unnecessary restrictions, when in fact, they’re aiming to help facilitate positive trading behaviour.
Making it Automatic
Consistency is also a bit synonymous to another term: automation. Setting rules and sticking to them breeds consistency, and consistency allows one to recognise familiar situations and have an automatic response. The fast-paced nature of forex trading rewards those who think on their feet, and punishes those who take forever to react. Learning such a skill requires time and dedication on its own, however, and is not for the impatient trader at all costs.
Successful forex traders are also rarely overwhelmed, even in the face of continuous losing trades. This is where the old adage “Winners never quit, and quitters never win” fits perfectly. A trader is headed for success if he doesn’t get overwhelmed with emotion after a bad trade (i.e. trying to make up for losses right away). Consistency breeds champions, since long-term benefits are always better than one-off fixes.