What Things can You Learn From Top Forex Traders?

When a trader opens the door of forex trading market for the first time, he will inevitably chooses one of trading styles in the market because of his lack of adequate understanding of the market. Therefore, traders enter the market and start their investment due to a variety of reasons. Some are attracted by basic traders to spend time on fundamental research, some are influenced by day traders to study the trend of the day, or some just follow senior investors to begin their technical analysis. That is to say, each trader who enters the trading market must have a different growth experience.

Then, will these different reasons affect the direction of your entire trading career? Is there a general framework that can help you cultivate your trading experience and thus shape your trading life? In this article, we will discuss what can you learn from the top traders. 

Successful Experience Summary of Top Forex Traders

1. Risk Management

This is the most important part of every master's trading experience. The key to long-term survival in the forex market is to retain financial strength, give yourself a chance and avoid running out of money in one or two trades. The principles of risk management vary from master to master, some based on technical charts, most based on percentage funding.

2. From Short-Term Invest to Long-Term Invest

Judging from the successful experience of most top traders , they all have a process of transition from short-term to long-term. As for the short term, investors have relatively high requirements in terms of analysis, memory, reaction ability, psychology, and trading channels. Just like a table tennis player can only subconsciously react to a quick spike, but has no time to think, these need high intensity training, but most investors have very little time to train. This is one of the reasons why short-term investors have greater losses.

However, as a experienced long-term top trader, he would not hesitate to stay away from the market and hold the position for months or even years in order to avoid panic and close out when the price fluctuates.

3. Success and Genius

There is no genius in the forex market. Intelligence and education can sometimes become obstacles to successful trading. The key to success is to admit mistakes, abide by feasible trading rules and trading systems, and be good at summing up experience.

4. Time for Success

The vast majority of masters start with failure, which can be as short as a few months or as long as 10 years. It is important to have a firm faith and learn from the experience.

5. Trading System

Many top traders have mentioned that they rely on the computer trading system designed by themselves in trading. The computer trading system can avoid personal emotional influence, especially when the market is relatively chaotic, it can also resolutely execute the established trading plan, so that investors maintain a consistent probability of winning. Of course, everyone must learn to develop their own computerized trading system.

Things You Can Learn From Top Forex Traders

1. A Fundamental Understanding of Forex

Most important of all, top traders always trade on the forex market without acquiring a fundamental understanding of the basic workings of the market first.

There are both big wins and big losses to be made in currency trading, so it should go without saying that no-one should part ways with their money before holding a basic understanding of what they’re investing in. Learn about forex trading by conducting thorough research first and sometimes consider attending educational industry workshops and courses.

Top traders are able to confidently identify and comprehend jargon, strategies, trends and data when they invest.

2. Objectivity & Realistic Expectations

Top traders know the objectivity and realistic expectations well.

Objectivity or "emotional detachment" also depends on the reliability of your system or methodology. If they have a system that provides entry and exit levels that they find reliable, they don't need to become emotional or allow yourself to be influenced by the opinion of others.

Sometimes the market can move in ways that many didn't anticipate. Having realistic expectations means not expecting to make $1,000 after investing $250 in your trading account. Although there is no "safe" trading time frame, having a short-term mindset help them reduce the risks by exercising discipline when picking trades.

3. Research & Analysis

Top traders learn and get better by using market information to adapt and approach the market effectively. Top traders thoroughly research all information applicable to the currencies they trade and accurately determine the usefulness of that information.

Analytical skills are crucial as they allow a trader to comprehend better, recognize, and use trends in the market.

4. Patience & Discipline

As a top trader, he has the irreplaceable and vital skill of staying in the game no matter the circumstance. Every master trader needs an abundance of patience and discipline. A full-time trader will one day have considerable gains and significant losses the next day. A top trader comprehends that the situation will not last forever. They usually remain emotionally and strategically rational at the same time.

As stated earlier, it's essential to stay in the game as it lets you experience both the good and bad times, learn from them, and make relevant adjustments to your trading. This is why a top trader must be disciplined and patient to stay in the game, especially when profits are non-existent.

5. Knowing When to Cut Losses

Even the most experienced and successful forex traders don't get it right every time and recognising when it's time to cut your losses and get out of a trade is one of those important forex lessons to learn. Granted, it's not an easy one to master as there's always the possibility that the market could go back in your favour, but it can also lead to risky trading, resulting in losses you may not be able to afford.

With this in mind, staying true to your pre-planned forex trading plan is key, as you'll be able to effectively weigh up the risks and have a better informed view on when it's the right time to let go and move on to your next deal.

6. Keeping Records

Top traders learn from their mistakes while losing traders rarely learn. One serious habit for a top trader is to keep a trading journal. The trading journal maintains a record of every trade as it occurs, your entry point and why you bought or sold the stock, your stop-loss order, and the take-profit order. The journal should also contain information on what happened after initiating your trade and your reaction to the market action, and lastly, your win/loss amount. This is because, in order to improve your strategy, traders must simply refer back to their previous trades, tweaking tried and tested methods to find one that works for them. Though it can be quite intensive, keeping on top of the books will help you reap the potential benefits the forex market has to offer.

Conclusion

Anyone can trade in the forex markets, but it takes more than investment capital to be a top trader. Every trader dreams to join the master traders' rank and earn money. After learning from top traders, you may develop and perfect your analytical skills, for example, you should focus less on money to be earned and concentrate on taking the right action at the most appropriate time. Now you have a real chance of being a top forex trader.