Forex Strategy Trading Tips: 4 Easy New ways to Discover Your Trading Personality

Most Forex investors don’t understand the reality that their personality will have a high effect on their trading career. Regardless if you are a discretionary trader who takes all his trades manually or you use automated Forex strategy trading strategies, your personality will have an effect on your trading success.

 

Understating how your unique personality can affect your revenue can be fairly complicated because most Forex programmes, schools, and mentors don’t educate you on how to do this. In this edition of my Forex strategy trading tips I am going to teach you 4 ways to discover your trading personality.

 

Learn your risk threshold and your risk boundaries:

 

Each and every trader has a unique risk threshold. In my trading career I have come across traders who would not tolerate risk at all and they would prefer to have a money manager handle all of the trading.

 

On the other hand, I have met individuals who had a high-risk tolerance and consequently traded 5% to 10% per trade (not what I would recommend.). Determining your risk tolerance will assist you to understand the money management tactics you need to apply to your trading. Figuring out your limits will allow you to under no circumstances take unreasonable judgements because you are trading beyond your limits.

 

Find the appropriate trading style for you:

 

Your trading style should be chosen based on your personality. For example, if you are a patient investor who can hold a position for a few days, then swing trading might be for you. Maybe you like a lot of excitement and fast paced trading, in this case you might want to look into scalping, and so on.

 

By picking a trading style that helps you to develop a balance between your trading career and your personality you will increase your chances to become a incredibly lucrative Fx trader.

 

Uncover your own personal motivators:

 

A motivator is the reason or reasons a person for acting or behaving in a particular way. It is also the reason why we all do things and take action. In Currency trading, people normally have two motivators. First, a number of people are motivated by the monetary rewards they can receive from trading Fx. Second, some people become motivated because of the self fulfillment they can get from trading the markets.

 

Finding your motivators will allow you to better plan your approach to the market. The best way to find your motivators is by asking yourself: “What motivates me to trade? Why do I want to be successful at trading?”

 

Define what will indicate that you are out of your comfort trading zone:

 

You comfort trading zone is the moment when you feel completely in sync with the markets and you are able to trade the markets profitably, maintain your emotions out of the picture, and make money at ease.

 

Defining how to measure if you are out of your comfort zone can help you to know when to go back to the basics and especially stop trading.

A few good examples of indicators that you are out of your comfort zone include: a certain amount of days without a winning trade, you find yourself taking irrational trades, or your stress levels from trading are abnormal.

 

Remember, learning how to efficiently implement Forex strategy trading is a on going process and the more knowledgeable you became the better you will perform as a speculator.