Currency Trading For Dummies, 3rd Edition

Chapter 17

Ten Habits of Successful Currency Traders

In This Chapter

Getting in the groove of positive trading habits

Staying on top of market events and price levels

Narrowing your trading focus

Trading with a plan and sticking to it

Here are ten rules we think define the best currency traders we’ve ever seen. Many of these rules apply to traders in any market, but some of them are unique to the currency market. The important idea to keep in mind: No one is born with all these habits. The only way to acquire them is the way other successful currency traders have — through patience, discipline, and experience.

Trading with a Plan

No successful trader will last very long without a well-conceived game plan for each trade. Sure, you may have some short-run success winging it, but the day of reckoning will surely come. Successful currency traders have a specific plan of attack for each position, including position size, entry point, stop-loss exit, and take-profit exit.

They stay flexible with their take profits, sometimes settling for less if they judge that that’s all they can take ...