10 rules that most successful investors in Forex follow. Although these habits seem simple, the only way to acquire them efficiently and ultimately is through patience, discipline and experience.
Here are 10 habits of successful investor in Forex.
1. Utilizar un Plan
No successful Forex trader would last long without a good game plan for each of the operations carried out. While it is possible to have successful operations Logar occasionally without following a pre eventually plan, this will not work, and end up losing money.
Successful investors have specific plans of attack for each position, including:
Position size
Entry point
A Stop / Loss (S / L) well defined (much are you willing to risk)
A Take / Profit (T / P) well defined (The gain is looking for)
A successful investor in Forex is also flexible when it comes to getting your winnings, sometimes closing their positions before the T / P if it determines that the market will not advance more in their favor. At other times, you can extend rather take profit if the market so permits. However, what a successful investor ever does is move the Stop Loss of the original point unless it is in favor of the position, and in order to ensure some level of profit already achieved so far.
“Never move the Stop Loss unless it is in favor of the position to ensure profit levels”
2. Anticipate Major events
As in chess, the best players are always thinking about future moves trying to anticipate their opponents. A successful investor in Forex always be watching to future events and expectations that they can generate. Based on these considerations, they build their strategies and be ready and prepared to operate at the time of the events, and not drift as the rest.
3. Stay Flexible
Successful Forex investors do not engage emotionally with their positions. They recognize that not about being right or not, it comes to making money. They adapt to the latest information and are willing to quickly close their positions if events suggest so. At the same time, they are open to fresh opportunities that may appear on the market and are ready to react.
Being prepared also means maintaining sufficient margins to open operations at the right time.
4. Be prepared to operate
A successful investor is always prepared as well as possible in a market that is open 24 hours and subject to constant and events anywhere in the world. A successful investor must be prepared to:
The economic events of the next week to two weeks: Know the results of previous reports and what is expected for coming.
Scheduled Speeches: Knowing who will speak (of central banks or finance officers), who said the last time and is expected to say this time.
Meetings of the Central Banks to determine rates: Having a calendar with the following meetings and what the market expected to decide in each case.
Meeting of financial leaders, such as the G7 financial ministers or Europe: It is important to know whether the issue of currency will be played in one of the future meetings.
Liquidity conditions: It is essential to be aware of the times when market liquidity may be affected, either at certain times of the day when some markets, holidays, end of the month, so close
Unexpected events: It is essential to be enrolled in services that provide alerts for news or unexpected events, to assess potential opportunities and risks.
5. Be Important Technical Levels Earrings
Even for those Forex investors who do not follow strictly technical analysis, it is essential to be aware of the most important technical levels couples are followed, such as setbacks or Fibonacci support and resistance levels.
6. Follow the Trend / Trading in Ranges
Successful investors know whether the market has a definite trend or moves between ranges. If the market has a definite trend, a successful operator always try to follow this trend and not get inverse to the same operations. In this sense, they expect to have corrections trends, ie prices are returned to points of support or resistance keys to enter advantageously with the flow and hope that this will summarize. Similarly, if they determine that the market is moving between ranges, they take advantage of this situation by selling at high points and low points buying range.
7. Focus on a few pairs
Many successful investors focus on only one or two coins to perform all operations. This allows them to better understand these markets in terms of price levels and behavior. It also makes more manageable amount of information and news you need to monitor. Above all, they recognize that each currency pair has different personalities, and are able to adapt according to the situation.
8. Protect Profits
To become a successful investor in Forex, you should take profits on a regular basis, either partially or leaving a position reaches T / Original P. The important thing is that once a transaction is winning, the investor must not lose focus on that gain in order to achieve more money. Hence the importance of handling a well defined together with the flexibility that allows us to close positions when the case plan.
9. Operating with a Stop / Loss
Every successful trader loses money from time to time. What makes them successful in the long term is that their losses are relatively small compared to the profits of their successful operations. The absolute key to this is to always keep an S / L in absolutely every one of the operations. Nobody likes to lose money, but the best investors are able to accept this as part of the cost of doing business. And the only way to accept this regularly, is holding small losses. This is one of the most important habits to master.
Note 10. Other Markets
Currencies are not traded in vacuum. Smart investors routinely keep an eye on the other world financial markets and oil prices and gold for example. In many cases, there are significant correlations between these markets and some pairs in Forex. Keep abreast of this information will provide the investor with an even wider and improved vision, allowing you to find confirmation or support the decisions.