best forex trading 2021, forex trader 2020, forex trader 2021, forex trading 2020
Whether you are a beginner or an “old hand” on the stock exchanges, one question occupies many equally:
How can you become even more successful in trading?
One possible way would be to look at the world’s most successful traders to learn from them. This article will tell you what the world’s top forex traders have in common and what strengths have helped you make big profits.
If you’ve read some statistics on the subject, you’ve probably found that the balance between successful and unsuccessful Forex & CFD traders is unbalanced. However, there are some reasons why such statistics should be treated with caution.
Meaningful, that is objective data are difficult to get, which is due to the decentralized organizational structure of the foreign exchange market. Market participants want to remain anonymous and not divulge their sensitive profit and loss ratios.
The question is, if you had this data, what good is it for you? Significantly more benefit will bring you a good education in combination with a balanced coordination of your personal situation. The good news is that there are many opportunities for further education, so you can improve yourself and your trading.
The division into “winners” and “losers” does not correspond to reality, but represents, if anything, a strong simplification of this. It is important to first define exactly what a “winner” and what a “loser” is. The reality is not just black & white but has many nuances. It can be observed that it is rather a distribution in the form of a bell curve and represented by the following groups:
There are a few few with high losses
There are a large number with small losses
There are a large number of small profits
There are a few with high profits
The few data available from Forex & CFD providers make it seem as if the big winners are the smallest group. Most people give up after a short time and the first losses, while the big winners continue to stay on the ball.
The share of market participants with small losses is larger than that of market participants with small profits. The main reason for this is the resulting transaction costs on each trade. If the figures are adjusted for transaction costs, the relationship between the two main groups is much more balanced.
If we take a look at the best forex traders in the world, we find some similarities among them:
Discipline: The ability to recognize that one’s own judgment was wrong. This is a very important feature to minimize losses.
Risk management: A comprehensive understanding of opportunity and risk is very important for long-term success. (Learn more in our article on risk management for Forex & CFD trading.)
Courage: The willingness to stand out from the crowd and swim against the tide when circumstances require.
Foresight: A pronounced perception of market characteristics and trend movements. You do not lose sight of the essentials and have the “big picture” in mind.
With this combination of (character) traits, the best traders make consistently high profits.