Since the advent of online trading, becoming a successful trader has become a goal that many individuals strive towards, and a common resolution as the new year rolls around.
Yet, the reality is that there are stark differences between new traders and rich traders. Many people want to get rich from Forex trading, but don’t know how to begin. Perhaps they don’t believe that they have what it takes.
After all, people like Jesse Livermore and George Soros aren’t just your average Joe. The concept of ‘Fake it till you make it’ may be disputed among psychologists, but there is some merit in building up your confidence until you can achieve what you set out to achieve.
In this article, we will look at a few ways in which you can start adopting the habits of rich traders until you become one!
Think like a Rich Trader First of all, trading successfully requires one to master their psychology.
Unrealistic expectations are the downfall of many new traders who think that Forex trading is a get rich quick scheme.
While luck could play a part in earning substantial returns for newcomers, keep in mind that luck is not an infinite resource.
If you want your earnings to last, put in the work, and manage your expectations. Secondly, don’t let stress beat you down.
Learn how to manage your stress levels when markets move against you, and be patient enough to wait it out.
If you find it hard to keep your emotions in check, set out a trading plan, and stick to it instead of making impulsive decisions.
Most importantly, always keep on learning about the markets you’re trading in, as knowledge is the key to success.
Know your Risk Tolerance
For some traders, the risk is what keeps them going. For others, risk is to be avoided at all costs.
If you want to start acting like a rich trader, you need to find a balance between these two attitudes.
Shift your perspective from trading like a gambler to trading like a businessperson –with control and calculation.
Know when to bow out of a trade with dignity and admit you were wrong, and make sure to lock in profits from where you stand instead of being overcome by greed.
Find a Method that Works for You
The one thing that all successful traders have in common is that they didn’t give up. Other than that, rich traders cannot be put into a single category.
Each trader who persevered until they reached the point they desired in their career knew how to carve their own path, rather than follow the herd.
Rich traders can stick to their system -confident that it’s a winner -even when it seems to be losing.
Furthermore, rich and successful traders base their positions on probability and price action, rather than their own opinion.
Choosing the Right Broker
Choosing a broker that has much to offer is a crucial step in becoming successful. Look for a broker with low commissions, tight spreads, and high leverage to make the most of your funds.
CedarFX offers a 0% Commission Account with excellent trading conditions and up to 1:500 leverage on all Forex pairs.
If you’re curious about trying something different, why not check out their Eco Account option too? With a charge of just $1, you’ll be supporting tree-planting projects as you trade! Create an account at www.CedarFx.com and start trading with 1:500 leverage today!
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.