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

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.

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Daily Financial News

Czech Aug Industrial Production Rebounds Sharply

Czech industrial production surged in August, after falling sharply in the previous month, figures from the Czech Statistical Office showed Friday.

Industrial production expanded 13.1 percent year-over-year in August, reversing a 14.1 percent plunge in July. That was well above the 8.3 percent climb expected by economists.

On a working-day-adjusted basis, industrial production advanced 7.7 percent in August from a year ago.

Manufacturing production grew 16.6 percent, while mining and quarrying output declined by 4.6 percent.

Month-on-month, industrial production increased a seasonally adjusted 12.1 percent in August.

Separately, the statistical office revealed that construction output decreased 5.9 percent yearly in August, following a 16.3 percent slump in the prior month. Compared to July, construction output gained 0.8 percent

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Daily Financial News

New Zealand’s first Fairtrade Climate Neutral Coffee

Fairtrade have launched New Zealand’s first climate neutral coffee, which not only helps fight climate change, but also supports communities in developing countries. In partnership with Countdown, the Climate Neutral Coffee is exclusively available at Countdown as part of their Macro brand.

Fairtrade Climate Neutral Coffee means that the coffee production, from the farm right through to the supermarket shelf, has no negative impact on the climate. To achieve this, all participants in the supply chain first work to reduce their emissions and then offset the remaining emissions through the purchase of carbon credits from Fairtrade coffee farmers.

The carbon credits are generated by climate projects in Fairtrade farming communities, such as reforestation projects in Peru, the country where the coffee originates. These initiatives help Fairtrade farmers not only to combat the impact of climate change but also to earn additional income from the sale of their carbon credits.

Countdown partnered with Fairtrade Australia & New Zealand to develop the Climate Neutral Coffee exclusively for their Macro Organic range. The innovative product maintains Countdowns commitment to providing great quality products, while also helping to minimise their impacts on the environment.

James Walker, Countdown General Manager of Corporate Affairs says, “We’re pleased to extend our range of Fairtrade certified products, and be the first to launch a Climate Neutral Coffee in New Zealand.

“Demand for certified products continues to increase and this launch showcases our commitment to providing ethical and sustainable choices to our customers. The range is not only quality Arabica coffee, but it is also organic, Fairtrade certified and Climate Neutral.”

“With stores all around New Zealand, doing our bit to reduce our carbon footprint and operate sustainably is something the Countdown team is passionate about. In June this year we won the Ministry for the Environment’s Green Ribbon award in the ‘Resilience to Climate Change’ category for our work in increasing our energy efficiency and reducing our carbon emissions. We are actively working to improve how we do business to reduce the impact we have on the environment.

Molly Harriss Olson, CEO of Fairtrade New Zealand says, “We applaud Countdown for being a market leader in sustainability and are proud to partner with them on this innovative range. By choosing Fairtrade products, consumers are supporting a global system which is empowering and enabling 1.65 million farmers in 74 countries to adapt to climate change,” says Mr Walker.

“What makes Macro Fairtrade Climate Neutral Coffee truly unique is that the carbon compensation also takes place in the Fairtrade coffee supply chain. This means that Fairtrade farmers and their communities are benefitting from a fair price for their coffee as well as additional income from the carbon credits.”

All Fairtrade Carbon Credits are certified by Gold Standard, an organisation specialising in climate security and sustainable development. Gold Standard works to maximise the impact of climate and development interventions by creating robust standards for responsible management of the planet’s resources. Together Fairtrade and Gold Standard are uniquely placed to play a part in the global response to climate change

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Daily Financial News

ECB Minutes show no indication of exit discussion – MUFG

Derek Halpenny, European Head of GMR at MUFG, suggests that the release of the minutes from the September ECB policy meeting were pretty clear with the focus still very much on ensuring continued monetary stimulus.

Key Quotes

“The minutes stated that “there should be no doubt” that the Governing Council is determined to execute asset purchases and also emphasised that it would adopt further measures as required to reach its price stability goal. The minutes also showed that the Governing Council felt it was “crucial” to maintain the high level of monetary accommodation.

Add to that, we had comments yesterday from key ECB Council members to emphasise the maintenance of the current stance. Executive Board member Praet stated that recovery would stall if stimulus was removed prematurely while Constancio was more direct stating that the report on the ECB nearing a taper consensus was simply not correct.

So the stance of the ECB is unlikely to change and we maintain that the ECB will extend QE in December at the current pace with alterations recommended by staff committees allowing for an extension. While that in itself might not drive the euro weaker, it certainly limits the upside as we move toward that key meeting in December.”

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