Do you know why some Forex traders manage to stay in the game for a long time and are successful at it?
This is because they are equipped with the skills that enable them to ride the ups and downs of the market and earn from both situations. Master traders are adept at research and analysis, adaptable to market conditions, disciplined, and resilient.
If you want to achieve this level of mastery and become a successful trader, you need to develop the essential skills needed for trading.
How to become a skilled and profitable trader
Once you have a fundamental understanding of Forex, the next step is to develop competency in trading. The process often involves several things, starting with learning the foundational skills.
1. Find a mentor
Think about it, if you're confused about something, you ask for clarification from someone who knows. In the same sense, you refer to a professional trader to gain more knowledge about the Forex market.
A great mentor will not only impart the necessary skills but also valuable insights to help hone your abilities. What you learn you can then use to move up to the advanced level.
You should also remember that traders never stop learning, even the masters. So make it a priority to continuously educate yourself. Sign up for free webinars, buy trading books, or subscribe to live trade calls and updates. With plenty of sources online, your options to learn are endless. Just make sure your sources are credible.
2. Observe successful traders
The financial markets have many successful traders, some of which authored books on trading and investing.
In the world of Forex, some of the best professional traders include George Soros, Stanley Druckenmiller, and Bill Lipschutz. There are also female traders who not only reached millionaire status but has made major contributions.
Raghee Horner, for example, is one of the top female traders who built the "any market, any time frame" indicators and is an expert analyst on futures and Forex.
You can study their strategies, thoughts on and approach to trading to gain ideas and inspiration that you can apply to your own trading and decision-making process.
Make sure that you test what you learn. Replicate their strategies or follow their recommendations.
Another way to learn from the pros is to copy trade. The best copy trading platform has successful strategy/signal providers that you can follow. Learn from the strategies they share with you and their followers.
Here’s What You Need to Know about Copy Trading
3. Set a trading standard
The Forex market has no shortage of trading opportunities every day. Each one will require a different strategy and budget. If you go for all of them, you're going to exhaust yourself and even your capital.
It's recommended that you define an ideal trading approach and then focus and master it. You can develop your skills quickly if you pursue one or two things rather than run all over the place.
Another option is to identify your strengths and choose a trading style that will enable you to capitalise on them.
4. Record your every trade meticulously
Most successful traders keep a journal where they record every aspect involved in their trades, from the currency pairs bought or sold to the emotions they experienced. Done meticulously, your journal can provide you with a full view of what transpires when you trade.
- Why did you buy that currency pair?
- Did you pick the right entry and exit levels?
- Did the price move past your stop-loss?
- How often did the price reverse just before your profit target?
Regular journaling can also show you certain times of the day that have more winning or losing trades or patterns that will guide you on your next move.
Moreover, a trading journal will show you where you excel or underperform, which strategies are more profitable, and which emotions tend to derail your focus.
Make sure that you not only keep a journal but review it at the end of every trading day.
5. Practice, rinse, repeat
Nothing beats regular practice to help you develop new skills and hone existing ones. Apply what you know so your time and efforts are not wasted.
Open a demo account and use it to test your strategies. You get to collect useful data without the risk of losing money. Make sure that you treat this account the same way you would a live account, so you don't fall into the "demo trap."
That is, you ignore market risks because you're trading virtual money and end up doing the same thing when using a live account.
6. Join trading tournaments
Participating in trading tournaments not only opens up opportunities to win handsome rewards but also hone your trading skills. Competing against some of the best traders has amazing benefits other than the prize.
- Test your skills against other traders
- Learn from fellow traders
- Develop the aptitude to act and react quickly
- Help you discover your real potential as a trader
Most importantly, it teaches you how to reach your goal while staying in control.
In limited-time events where the highest profit earners are declared a winner, some participants have the tendency to ignore the rules. They forget about their risk management procedures. Some may even allocate a huge sum if not the entirety of their account just to maintain a competitive edge. Doing so comes with a significant amount of risk.
However, if you manage to win without making sacrifices, you'll be closer to becoming a master trader. The skills you learn from the whole experience will also help you make more profitable trading decisions.
So don’t shy away from trading tournaments, especially global tournaments like Fullerton Markets’ Asean Trading Tournament. Grab this amazing opportunity to compete with the best and most successful traders in Southeast Asia and gain advanced skills in the process.
Who knows? You might be the next champion.
Ready to grow your wealth from the world's largest financial market? No better place to start than right here with us! Start trading with Fullerton Markets today by opening an account:
You might be interested in: How to Trade Gold and Make Money on Autopilot
