Connect with us

Industry News

The two most important character traits to succeed in forex trading: Discipline and patience | London Business News | Londonlovesbusiness.com

The forex market is such a complex and a vast space, where traders deal with massive volumes of information every day in an effort to make profitable trades. Some of the information propagated across media and training webinars include identifying a good forex broker and having a sound trading strategy accompanied by stop loss for…

The forex market is such a complex and a vast space, where traders deal with massive volumes of information every day in an effort to make profitable trades. Some of the information propagated across media and training webinars include identifying a good forex broker and having a sound trading strategy accompanied by stop loss for every trade executed.

Unfortunately, rarely is trading psychology, patience and discipline, allocated enough time when training new traders because many do not recognise its importance in their trading career. But since the financial market is a double-edged sword, it justly slams any trader who is either indisciplined or impatient. This explains why over 90% of forex traders fail to manoeuvre successfully in the market despite having both a good strategy and forex broker.

Before we dive into the details here, we recommend reading this report of the top U.K. forex brokers by The Tokenist, and signing up for one that meets your criteria. As we walk through the steps to becoming a successful FX trader, you’ll want to have your account open in a separate tab to follow along.

In this article, we will learn the importance of two virtues, patience and discipline regarding the execution of trades. The information in this article helps nullify the idea of forex being a get-rich-quick scheme adopted by many traders.

How essential is patience when trading?

First, developing the right strategy and skills takes time. But the act of waiting for the excellent trading opportunities to pop up, entering and exiting trades requires a lot of patience. Therefore, it helps traders eliminate FOMO (fear of missing out), an emotional turmoil experienced by traders when they haven’t taken a trade.

Although everyone wants to increase their gains, maximise any potential price movement and volatility, being calm is vital to avoid overtrading. Patience assumes the role of keeping you at peace until the appearance of the right trading opportunity.

Second, despite the strategy or the broker adopted, losses are part of the trading arena, and traders should handle them appropriately. We all agree that a sequence of losses can drain confidence and ultimately quitting the trading hassles. But this should not be the case for any trader who wishes to thrive in the market. Instead, patience helps one to learn from their mistakes instead of sweeping them under the carpet. Patiently, a trader distinguishes what worked from what didn’t, regain trading momentum and get back into the game.

Forex trading involves two vital facets: research and making decisions. Understanding the working of the market takes time to know the best currencies to trade and which setups to take. This process helps a trader develop a plan and stick to it despite unexpected market movements which would sway the impatient traders to make spontaneous decisions.

Understanding technical and fundamental analysis helps a trader make informed decisions and remain calm instead of exiting trades early or missing out on excellent opportunities because of an emotional rollercoaster.

Why should you be a disciplined trader?

To succeed in the trading business, every trader should develop a sound strategy taking care of risk-reward ratio. Indiscipline and impatience manifest in overleveraging and changing of strategies with each trader. A disciplined trader takes note of risks versus rewards, account balance, trading sessions and market fundamentals.

This level of discipline can be developed in demo accounts used to test strategies without losing real money. By so doing, one develops a risk management lifestyle, governing the stop-loss and take-profit for every trade. Disciplined traders also overcome greedy emotions characterised by using huge lot sizes.

As we said earlier, losses and backfiring of trades are normal when trading. No matter the causes of a drawdown in a trader, disciplined traders keep a journal which helps them track and learn from past traders; hence, improving their strategies. The best definition of discipline is doing what is expected and anticipating improvement. Therefore, staying focused is the character of any successful trader, no matter the failures encountered on the way.

Although patience and discipline are essential, success in forex comes about through learning and experience reaped over time. Apart from having a good strategy and the right trading psychology, having the right broker such as Etoro and Oanda, is essential due to its tolerable spreads. Check out this link to learn more about brokers.

The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision.

Continue Reading
Advertisement

Industry News

School4Trading Review – How to Spot Possible Forex Broker Fraud

School4trading Review

School4Trading Review – How to Spot Possible Forex Broker Fraud

In this School4trading Review, we will look at the features of the software, as well as the customer support. First, let us look at the interface. The design is simple and easy to navigate. It also provides a chatbot, which helps you to communicate with the broker. The customer service is warm and inviting, which is a hallmark of a good broker. In contrast, a fraudulent broker will use cold and impersonal customer support to lure people in.

Another problem with the system is that the login process is not always intuitive. You may have to retype your password several times to get in. Then, you may experience difficulties withdrawing your funds or accessing your account. In such cases, you might have to wait for days or even weeks before you can withdraw the money you’ve invested. This is not a good sign. It’s better to choose a different trading platform altogether.

If you’re having trouble logging in, you should also check the legitimacy of the broker. Whether the broker is licensed by a reliable regulatory body or closed down, you’ll want to be sure it’s legitimate. If the broker isn’t licensed by the right body, don’t trust him. You shouldn’t waste your time with an inexperienced company. This will only cause you problems in the long run.

The next factor that should be checked is the licensing. A legitimate broker will have a license from a high regulatory body. However, a broker without a license will be unreliable. Moreover, a reliable regulator will take away the license of a scam broker. As a result, a trustworthy School4Broker/Profittrade review should mention fees, account rules, and contract terms. A scam broker will be unable to operate legally.

Secondly, look for warning signs. The broker should be licensed and regulated by a reliable regulatory body. It should be regulated by a high level. If it doesn’t, it’s a scam. Lastly, it should have a website that lets you easily access your account. Moreover, you should not hesitate to check the contact information. If you find any information that seems suspicious, you should reconsider using the broker.

In summary, Forex trading isn’t easy, but it doesn’t have to be complicated. It’s not as difficult as it seems if you’ve heard about the program. You’ll learn everything about the basics and how to become a professional. But if you’re still unsure about whether this program is right for you, don’t hesitate to contact a school4trading’s website.

The most important thing to remember when it comes to Forex trading is that it’s not easy. While it’s important to have a strong background in trading, there are a number of factors that can affect your success. Having a proper plan is vital in the long run, because you will be trading with real money. And, the platform should be reliable. Otherwise, you’ll end up losing a lot of money.

As we’ve mentioned, Forex is not easy. Investing isn’t something you can do in the comfort of your own home. You need a proven system. There are no free trials, so you’ll have to find a way to do it yourself. This isn’t a scam, and it’s a great way to make money without any help. A Forex system can help you learn the intricacies of the market.

Although the process of learning Forex isn’t an easy one, it’s certainly not impossible. Fortunately, there are many people who are willing to take the time to learn how to trade. But, even the most experienced trader needs to be aware of the risks of the market. While Forex trading isn’t easy, it can be done with the right knowledge. The software’s user-friendly interface is key.

Continue Reading

Daily Financial News

Don’t Count On JPY Correction; Staying Long GBP/JPY

The path of the potential pace of the JPY decline may still be underestimated by markets, which continue trading the JPY long.

While the 10% USDJPY advance from September lows looks impressive from a momentum point of view, it may no thave been driven by Japan’s institutional investors reducing their hedging ratios or Japan’s household sector reestablishing carry trades.

Instead, investors seemed to have been caught on the wrong foot, concerned about a sudden decline of risk appetite or the incoming US administration being focused on trade issues and not on spending. Spending requires funding and indeed the President-elect Trump’s team appears to be focused on funding. Here are a few examples: Reducing corporate taxation may pave the way for US corporates repatriating some of their USD2.6trn accumulated foreign profits. Cutting bank regulation could increase the risk-absorbing capacity within bank balance sheets. Hence, funding conditions – including for the sovereign – might generally ease. De-regulating the oil sector would help the trade balance, slowing the anticipated increase in the US current account deficit. The US current account deficit presently runs at 2.6% of GDP, which is below worrisome levels. Should the incoming government push for early trade restrictions, reaction (including Asian sovereigns reducing their holdings) could increase US funding costs, which runs against the interest of the Trump team.

Instead of counting on risk aversion to stop the JPY depreciation, we expect nominal yield differentials and the Fed moderately hiking rates to unleash capital outflows from Japan.The yield differential argumenthas become more compelling with the BoJ turning into yield curve managers. Via this policy move, rising inflation rates push JPY real rates and yields lower, which will weaken the JPY. Exhibit 12 shows how much Japan’s labor market conditions have tightened. A minor surge in corporate profitability may now be sufficient, pushing Japan wages up and implicity real yields lower.

JPY dynamics are diametrical to last year . Last year, the JGB’s “exhausted”yield curve left the BoJ without a tool to push real yields low enough to adequately address the weakened nominal GDP outlook. JPY remained artificially high at a time when the US opted for sharply lower real yields. USDJPY had to decline, triggering JPY bullish secondround effects via JPY-based financial institutions increasing their FX hedge ratios and Japan’s retail sector cutting its carry trade exposures. Now the opposite seems to be happening. The managed JGB curve suggests rising inflation expectations are driving Japan’s real yield lower. The Fed reluctantly hiking rates may keep risk appetite supported but increase USD hedging costs.Financial institutions reducinghedge ratios and Japan’s household sector piling back into the carry trade could provide secondround JPY weakening effects

Continue Reading

Daily Financial News

Mexico raises interest rates, cites Trump as risk

The head of Mexico’s central bank says U.S. Republican candidate Donald Trump represents a “hurricane” sized threat to Mexico.

Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.”

Trump has proposed building a wall along the border and re-negotiating the North American Free Trade Agreement.

Mexico’s central bank raised its prime lending rate by half a percent to 4.75 percent Thursday, citing “nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant.”

Mexico’s peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike

Continue Reading

Trending