Alan Safahi of Orinda, Contra Costa, an experienced entrepreneur and founder of a San Francisco-based startup company, believes that successful forex traders have a set of unique traits or characteristics that set them apart from others.
You can increase your chances of making successful trades by borrowing some of the traits given below and using them in conjunction with evidence-based knowledge. To make it easier for you, Alan Safahi Orinda has come with these five characteristics that every successful forex trader follows.
1. Sticks to the Plan
No successful forex trader lasts longer without a plan for each trade. Successful traders have a specific and informed plan of attack for each position, including entry point, position size, stop-loss exit, and take-profit exit.
Safahi says traders with higher success rates always stay flexible with their take profits. However, they also settle for less when they make judgments and find that this is all they can take out of the forex market at the moment.
On the other hand, they also extend their profit targets when the market developments are in their favor. Safahi’s research and experience show that successful forex traders don’t move their stop-loss orders from the original setting unless they are in their favor.
2. Stays Flexible
Foreign exchange traders do not emotionally attach themselves to positions. A successful trader recognizes that it is not about staying right or wrong but minimizing losses and making profits. Safahi recommends everyone that this should be every trader’s ultimate goal.
In addition, successful traders adapt to incoming data, information, and news. Likewise, the trader abandons an open position if the situation counters. It means the trader does not wait for price action to take it out of their trade.
3. Keep Up to Date with the Technical Aspects
Successful currency traders are well-aware of technical levels in forex trading and currency pairs even if they don’t pursue a technical-based strategy. For instance, Alan Safahi Orinda, Contra Costa says that a successful trader knows the Fibonacci retracement levels and focuses on important short-term and long-term trend lines. At the same time, they get up-to-date information on significant highs and lows in the forex market.
4. Protects Profits
A successful forex trader makes efforts to take profits and minimize losses, whether it is modifying a stop order, partial take profit, or squaring up entirely and stop trading after a profitable movement in the market.
Besides, a successful trader will always analyze the market and ensure a profitable trade with minimized risks. Similarly, they keep what they have made instead of risking it to make more.
5. Keeps a Track Record
A trading account is in one of three situations at the end of each month or year. First, you have made a profit over that period. Second, you are roughly breakeven. Third, you have lost money. Regardless of your account status, it is crucial to improve your results in the coming period.
That’s why Safahi recommends reviewing your trades’ track record. For example, if you have lost money trading around the non-farm payroll report in eight of the twelve months, you can avoid trading during this specific period in the next year to improve your results.
Originally Posted: https://alansafahiorindaca.wordpress.com/2021/10/02/5-characteristics-of-a-successful-forex-trader/
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