Index • Trading Skills That Every Forex Traders Needs • Analytical Skill • Research • Focus • Control • Record Keeping
Skills are learned. With a bit of effort, traders can gain their analytical skill, research, focus, control and record keeping. • The investment of time and energy will pay off in better trades. • There are many routes to becoming a professional trader.
1. Analytical Skill • One skill every trader needs is the ability to analyse the data quickly. • There is a lot of math included in trading, but it is described through charts with patterns and indicators from technical analysis. • Consequently, traders need to develop the analytical skills so they can recognise trends and trends in charts.
2. Research • Traders need to have the healthy appetite for information and a desire to find all the appropriate data that impacts the securities they trade. • Some traders create calendars of economic releases and set announcements that have calculable effects on the financial markets.
By being on top of those information sources, traders can react to new information as the market is still digesting it.
3. Focus • The focus is a skill, and it increases the more traders exercise it. • Because there is so much financial information out there, traders need to be able to hone in on the valuable, actionable data that will affect their trades. • Some traders also focus in on the types of securities they trade so they can increase their understanding of a particular sector, currency or industry to the point where it becomes a competing advantage against less specialised traders.
4. Control • Hand in hand with focus controls. • A trader needs to control his or her emotions and stick to a strategy and trading plan. • There is particular importance in managing risk by using stop losses or taking profits at set points.
Many of the strategies are designed, so the trader loses a little in bad trades and systematically earn more on good trades. • When a traders start to get emotional about their trades good or bad strategy goes out the window.
5. Record Keeping • One of the most important thing in trading is record keeping. • If a trader records the results of his or her trades diligently, then improving is simply a matter of testing and tweaking the Strategies to find a successful one. • It is hard to show the real progress if you are keeping accurate records.