The Lifehacks Of A Successful Forex Trader
We reveal the secrets to success in the world of forex trading.
Published on 14 September 2017
There is no shortcut to success on the forex markets. The road to a profitable career requires not only an understanding of how to trade and read the markets, but also managing your own actions and expectations. As a currency trader, the most important factor to have on your side is thorough preparation. Setting the groundwork for success means having a contingency plan for every outcome and eventuality; staying focused and alert by keeping yourself healthy, disciplined and well-rested. But precisely how do lifestyle considerations like sleep, down-time, and diet effect a forex trader?
The forex market never sleeps. The allure of the currency markets is, for many traders, the very fact that it is possible to participate around the clock. Yet the temptation to put in long hours can prove all too costly for some. A healthy outlook and an alert mind are far more profitable than long hours spent without a break.
Setting a schedule ahead of time and then sticking to it is more challenging than it may appear. If you are enjoying a string of successful trades, it can be tempting to stay at your desk and work the markets a few hours longer. Much worse, however, is if you put in some overtime in an attempt to recoup a day’s losses. Not only are you trading through fatigue, but also stress and heightened emotions.
It can be easy to overlook the benefits of downtime at the end of a long day, simply because it cannot be easily quantified. However, the long term net benefit – to both your health, and your account balance – is incredibly significant. How do expert traders put these good intentions into action? Again, the key is planning and discipline.
Sleep early, rise early, and seize the day each and every morning.
While rest and relaxation help to maintain focus, a balanced diet is supplying your body with the fuel it needs to stay energised throughout the day. While the movie Wall Street may have taught the previous generation of traders that “lunch is for wimps”, today’s success stories never skip a meal.
Why is a regular diet so important? Because two of the key dangers of skipping meals are dehydration and low blood sugar. Both of these factors have a significant, negative impact on your concentration and judgement, and these are two abilities that every forex trader relies on.
Recommended daily fluid in-take is around 3 litres for men and 2.2 litres for women. Hitting those optimum amounts means always having a cup of fresh water on the go throughout the day. Coffee, when taken in moderation, is every forex trader’s friend. Not only does caffeine keep you alert, it has been shown to improve your long term memory – ideal for recalling past strategies and market moves.
Many people think that snacking between meals is inherently unhealthy. In reality, a well-chosen snack is the best way to keep energy levels consistent throughout the day. Aim for fresh fruit or low sodium savoury items. Fresh produce is the primary source of vital vitamins and nutrients, while avoiding salt means lowering the risk of high blood pressure. The immediate repercussions of high blood pressure can be just as damaging to your trading account balance as to your long-term health. It is linked to short temper and poor, emotional decision-making.
Healthy living will provide benefits in every area of life, but it can be reassuring to remember that these are some of the most valuable life lessons that expert forex traders live by. Each strategy helps to improve concentration, focus, and mental well-being and, as a consequence, improves the odds of success with every decision you make. The forex markets are fast and exciting, and can provide an endless supply of distractions. But remember that there is no benefit in understanding the movements of the markets if your judgement is too clouded by fatigue to execute the best trades at the right time.
The forex markets rarely reward an emotional response, so it is vital to keep a level head. Eating correctly, resting, and managing your emotions are the lifestyle changes that help you to achieve this. And do not forget that the occasional loss is inevitable. Maintain a rational mindset and accept the negative outcomes of a trade without letting them impact upon your long term strategy. Because as soon as you begin to change your plans on the fly, you are trading without planning and preparation. When the pressure starts to build, step away and take a moment to re-centre and re-establish your goals. You cannot compete when your judgement is clouded; showing emotional maturity brings its own rewards.
In the infographic below, we reveal the “Ten Commandments Of Forex”.