2Bull Forex Blog

There are so many traders in the currency market, and yet only a few are able to consistently make money. These are the people who are able to do the things that thousands of others can’t. They are truly exceptional people.

In this article, I will briefly discuss the 2 main characteristics successful traders, and why it’s so hard for others to follow in their footsteps.

Characteristic 1 - Discipline

In my opinion, this is the number one reason why most people fail to make money in Forex trading. There are plenty of educational resources to help most people become (at least) decent traders, and yet most people don’t follow these useful teachings.

Why is that?

You see, when you’re at your trading terminal (i.e. your computer or laptop), there’s no one to tell you what to do. At work, your boss is watching your every move, and even at home, your family members are at some level keeping you in check.

When trading however, there’s no one to stop you from making mistakes. You’re allowed to cut corners; you’re allowed to break your trading rules; heck, you’re basically allowed to do anything you want!

And that’s why most people fail… because they trade alone without supervision or help.

If you can master your own discipline, success as a trader will come naturally to you.

Characteristic 2 - Passion for trading

This is another characteristic of top traders that most other people don’t possess.

Successful top traders are in love with trading. To them, it’s a satisfying activity in itself - making lots of money is only a bonus. Their number one priority in trading is the satisfaction derived from a well-placed trade.

Most other people however, look at trading as only a means of getting rich. They chase after the latest fads and trends without developing a real passion for the game. After the initial excitement of trading is over (not to mention their empty trading accounts), they move on the next best ‘money making’ opportunity.

The people who have a true passion for trading will still be around, working hard to improve themselves and their trading system.

Forex signals are one of the most sought-after services in the currency trading industry. Some of them are free, and some require a hefty financial investment before you can have access to these signals.

In either case, this article discusses two important aspects of Forex signal services that you should know about, before subscribing to one.

What Are Forex Signals?

Forex signals are essentially services that tell you when to buy or sell a particular currency pair. Many retail traders subscribe to such services in the hopes of profiting from trading in the currency market.

Typically, these signals are transmitted to the user either via email, or phone text messages.

Important Aspect 1 - No scalping signals please!

Scalping usually involves the rapid entering and exiting of trades in the span of a few short minutes. As such, it’s sensible to ignore any signal services that claim to be able to provide you with accurate entry and exit signals for scalping purposes.

This is due to the simple fact that by the time the user reads the email (or text message) and enters into the trade, the small window of opportunity would already have been lost.

Although I generally don’t recommend traders to subscribe to any Forex signal service at all, if you insist on doing so, please stay away from scalping-related signals.

If you absolutely have to subscribe to a signal service, at least go for one with a longer time horizon, such as intra-day signals, or intra-week signals.

Important Aspect 2 - Never start with a live account

If you’ve never subscribed to a particular signal service before, don’t start using it to trade your live account. It’s good practice to always use a demo account first. That way, you can judge the reliability of the service without putting any of your money at risk.

Many free signal services are scams, and you wouldn’t want to throw away your hard-earned money based on the ‘signals’ sent by an anonymous person over the internet.

Always test your signal service with a demo account first!

Many beginner Forex traders are lured by promises of overnight wealth and instant riches. They get excited over the prospect of making $300 in an hour, and can’t wait to get started. Unfortunately, this is the type of attitude that gets most people into trouble.

Now don’t get me wrong… Forex trading CAN be a very lucrative activity (or hobby, even), provided that you know what you’re doing. Most people however, start off on the wrong foot and inevitably wipe out their entire trading accounts.

The Secret of profitable Forex trading is not about making money

This is perhaps one of the hardest concepts to grasp. It’s easy to explain, but hard to implement in reality.

You see, the ultimate goal of all retail Forex traders is to make money in the currency market, right? However, the best way to become a profitable trader is NOT to focus on making money.

Confused? Allow me to explain a little more…

The Best Way To Make Money Is To Avoid Losing Money

This is the simplest way to put it: Before you can become a profitable Forex trader, you’ll first need to be proficient at avoiding (or reducing) your losses when trading.

The currency market is so volatile that losses are inevitable. Every trader WILL encounter numerous losses throughout his or her trading career. The question is whether these traders are able to survive from these losses to trade another day.

So many people rush to make the most amount of money in the shortest period of time that they throw all caution into the wind. They don’t pay attention to any money management strategies and dive head-first into the market.

Eventually, these are the traders who wonder what went wrong when their trading accounts show a big, fat ‘Zero’. Don’t be like these traders.

Learning The Right Things

It is my sincere advice for you to take the time to fully understand all the risks you’re taking as a retail trader. Understand how leverage works, and how it affects your ability to take losses. How much can you afford to lose before you’re knocked out of the market?

These are just some of the crucial aspects of Forex trading that you should pay strict attention to.