Experience is not easy to gain in the forex market and most traders are dropped by the wayside by the market even before they have had the chance to gain any. This is why you should not wait to gain experience to become better at FX trading and instead should instil the right habits in yourself in a pre-emptive manner.
Here are some qualities that experience will teach you in the forex market but if you learn them in advance then you will be ahead of the curve. Consider the following carefully.
The Market Is the Leader
Your understanding of the market will improve with experience. However, you can fast-track your progress by simply accepting the simple rule that the market will always be the leader. No matter how much you try to project and predict forex rates, you should know that you will never be 100 percent accurate.
Listen to Personality Traits
Success in the forex market is the coming together of the right things at the right time in the right way. In other words, your chosen strategy and currency pairs must suit your personality. If the nature of even one of these things is off kilter, you will not succeed in making profits.
Mind over Matter
You are not controlled by your emotions. Instead, you control them. With experience you will learn this, but if you pre-empt situations that will teach you this then you would be saving yourself from a lot of heartache and financial trouble. Every time you feel a certain negative emotion, forcefully shunt it aside and drive yourself to focus on logic.
Teach Yourself Discipline
Distractions are going to be your bane, regardless of which profession you are involved in. In the forex market, getting distracted easily can prove to be financially fatal. Discipline thus becomes one of the key aspects of trading in international currencies and something that you simply cannot avoid instilling in yourself.
Always Keep It Simple
It is a well-known fact that the forex market is free of all artificial influences and is only governed by market dynamics. There are so many factors that affect rates and prices that it is safe to say that the market is complex in nature.
With so much complexity already in the market, why would you want to add to it through your trading process? If you keep your trading process simple then even the complexity of the market will not confuse you.
Always Think Long Term
Forex trading is a long term exercise. Short term targets do not mean anything in this field. If you think short term then sooner or later you will suffer a crippling loss because you will take too many risks.
On the other hand, if you become a long term thinker then you can accumulate small profits to create a huge stockpile of money. Moreover, when the big win does arrive then you can use that huge stockpile of money to actually get even more just like legends like George Soros did.