Forex Strategy Trading Tips:4 Straightforward Techniques to Uncover Your Trading Personality

Most Forex investors do not understand the reality that their personality will have a high impact on their trading career. Regardless if you are a discretionary trader who takes all his trades by hand or you use automated Forex strategy trading systems, your personality will affect your trading success.

Understating how your unique personality may affect your earnings can be really hard since most Foreign exchange tutorials, schools, and mentors don’t teach you how to do this. In this edition of my Forex strategy trading tips I am going to teach you 4 ways to discover your trading personality.

Learn your risk threshold and your risk boundaries:

 Every individual has a different risk threshold. In my trading career I have come across traders who would not tolerate risk at all and they would would rather have a money manager handle all of the trading.

Conversely, I have met people that had a high-risk tolerance and for that reason traded 5% to 10% per trade (not what I would recommend.). Identifying your risk tolerance will help you to comprehend the money management tactics you need to apply to your trading. Understanding your limits will allow you to under no circumstances take illogical decisions because you are trading outside your limits.

Find the appropriate trading style for you:

Your trading style should be chosen based on your personality. An example, if you are a patient investor who can hold a position for a few days, then swing trading might be for you. Maybe you like a lot of excitement and fast paced trading, in this case you might want to look into scalping, and so on.

By selecting a trading style that helps you to create a balance between your trading career and your personality you will increase your chances to become a extremely lucrative Trader.

Uncover your personal motivators:

 A motivator is the reason or reasons a person for acting or behaving in a specific way. It is also the reason why we all do things and take action. In Fx, people normally have two motivators. First, some individuals are motivated by the financial rewards they can receive from trading Foreign currency trading. Second, a lot of people become inspired because of the self achievement they can get from trading the markets.

Finding your motivators will allow you to better plan your approach to the market. The best way to find your motivators is by asking yourself: “What motivates me to trade? Why do I want to be successful at trading?”

Define what will indicate that you are out of your comfort trading zone:

 You comfort trading zone is the moment when you feel totally in sync with the markets and you are able to trade the markets profitably, keep your emotions out of the picture, and make revenue at ease.

Defining how to measure if you are out of your comfort zone can help you to know when to go back to the basics and especially stop trading.

A few good examples of indicators that you are out of your comfort zone include: a certain amount of days without a winning trade, you find yourself taking irrational trades, or your stress levels from trading are abnormal.

Remember, learning how to efficiently implement Forex strategy trading is a on going process and the more educated you became the better you will perform as a speculator.

Best wishes,

Jay Molina

Pro Fx trader & Educator