No one can argue against the notion that trading is an integral part of our lives. We are all traders in life and without a doubt the most valuable commodity that we each trade every day is time. Each day revolves around how we will decide to spend our time. Whether we trade an opportunity to socialize in lieu of getting some rest, or miss a workout at the gym to meet that deadline, we all make trades every single day. Similarly, when trading forex and dabbling in the markets, we have to make decisions on how we will invest our time and money, prioritizing of course the effort to make profit and reduce the risk of our investments.
In this article, members of staff of the international broker ForexTime (FXTM) share their personal insights about trading, through famous quotes which they believe can be applied both in life and in one’s trading career.
“Patience and persistence will always prevail.” – George Stylianou, CMO, ForexTime
This is the most commonly agreed upon proverb. When it comes to succeeding in life and in your trading career, being patient is what always pays out in the end. Patience involves paying attention as well as having proper timing, and a successful trader knows all too well about this concept. Trading the financial markets is an investment in patience and sometimes you need to persevere and wait out your trades. It is no coincidence that the forex market is the most liquid of the financial markets. Its temperamental tendencies and volatile nature are what make for an exciting, fast-paced and lucrative environment for traders of all kinds.
The same fast pace also means that traders need to be on their toes to take advantage of the short bursts of market volatility. Most trading platforms provided by brokers usually offer some form of market alert tool to inform traders of noteworthy movement, but it’s also wise to set individual “stop loss” and “take profit” orders for each trade in case the market moves particularly fast. In moments of extreme volatility, currency pairs have been known to move more than 100 pips in a couple of hours, and when the market doesn’t move in the direction you want it to, it can be a rather unpleasant surprise. Impatient traders that refuse to wait for the appropriate time to make their move are the ones that burn out before the market’s close and are often never heard from again.
“Hard work beats talent when talent refuses to work hard.” – Jameel Ahmad, Market Analyst, ForexTime
Another insightful slice of wisdom provided by FXTM’s Market Analyst. We can all agree that having an aptitude for something can certainly be an advantage in itself but without the hard work to nurture it, that talent is destined to be wasted. Theoretically we can all achieve whatever we set our minds to as long as we remain focused on the task at hand.
Trading forex successfully is no easy feat, which is why investors need to find a reliable broker who will provide the necessary tools and information with the client’s interests in mind. Finding a trustworthy broker though is only the first step in the right direction. The next step is taking advantage of the tools and information provided and to apply them in a strategic manner so as to minimize the potential risk and increase the chances for profit.
Risk management is possibly one of the most important aspects of trading especially for forex newcomers and should definitely be considered every time a trade is placed. Successful traders that have put the work in know when it’s time to get out of a losing trade and will live to fight another day.
“The master has failed more times, than the beginner has even tried.” – Charis Mountis, Head of Dealing, ForexTime
Experienced traders know the importance of carefully studying both fundamental data and technical analysis charts before coming to a decision. Socio-political events and financial news releases affect each currency pair in different ways and knowing when to trade each pair and when to wait to enter a trade can make all the difference between profit and loss. This knowledge however, is not acquired overnight; those of us who are accomplished in their field, have failed time and time again. What makes them different is that they used their failures as a tool to make the most of future actions.
Having the strength of character to overcome the obstacles that are laid before us will eventually make them seem small and insignificant. Beginner traders may get lucky when they first start their journey but there will come times when they miscalculate or are over-confident and eventually they will lose. The ones that survive these small defeats will stand to win the war as long as they don’t give up!