The business of currency trading is tough and it requires certain skill sets - both micro and macro - because a mix of many factors goes a long way to determine the success of a trading career. The success secrets of great and extraordinary men are in their stories. I took time to listen to interviews from some of the industry's most successful traders, and I came to realize that they all have some virtues in common and it is these desirable traits that shall be discussed.
DILIGENCE: This is the ability to plan and stick to the plan. The ultimate trading formula that every trader needs to develop consists of a sound trading system, a good money management strategy and a reliable psychological pattern. Diligence is required in order to be able to find low risk and high yield trade openings or set ups. It is relevant for traders to be diligent about the business of trading currencies. The distinguishing factor between successful traders those that fail is the ability to remain diligent, focused and consistent.
DISCIPLINE: Psychological discipline is required in foreign exchange trading. It is discipline that makes a trader know exactly when it is safe to enter a trade and predetermine when to exit a particular trade. Emotions of greed, fear and uncertainty are signs to look out for when trading. These emotions are pointers as to if a given trade is good, bad or in between. Every trader needs to develop the discipline to consistently be on the winning side of the currency trading business. It is almost if not impossible to succeed in foreign exchange trading without the virtue of being disciplined.
PATIENCE: It is necessary to be patient in foreign exchange trading. This is times there may be false signals and so it is important to confirm certain signals before deciding to enter, exit or modify a given trade. It is better to be correct and late in entering a trade than to enter into a wrong trade and experience loss or a string of losing trades which will cut down your capital. This can prevent you from taking advantage of great opportunities that may be available due to economic indicators and strong fundamentals.
TENACITY: This is the ability to stick to a course of action until desired results are achieved. In foreign exchange trading, you cannot be one hundred percent certain all of the time. This is because three basic factors must coincide for any trade to be worthwhile: technical, fundamental and sentimental. One should be tenacious, especially when business is not doing so well and it seems like there is no hope of even regaining your capital. It takes tenacity, skill and knowledge to weather through the storms and sale through tough times victoriously.
WISDOM: The correct interpretation and application of facts to current market realities is another very important attitudinal aptitude required for a successful trading career. Wisdom is required to decipher a lot of information available from different sources to make decisions. It helps to clearly outline a course of action for a trader depending on his immediate or long term objectives. It is wisdom that will enable one to learn a lesson from every particular trade set up or event. It all eventually adds up to form a trader's psychological pattern for trading on markets.
The top five attitudes for traders is a psychological cocktail to help traders to cope with emotions regularly experienced when trading and be prepared to win with every experience.