What it takes to be a successful trader?

<p><strong>Understand how the markets move and why</strong>:&nbsp;</p><p>Retail trades make a fraction of the market capital. In forex, that number is about 3% and less. The big financial institutions and funds control the markets. The reason price moves in a certain direction or another is not because most people believe it will move in that direction but rather because that’s where most of the volume is. The more capital you have, the more control you have over the market’s direction. Institutions trade with billions of dollars and their number one goal is to turn profit just as you and me. But they don’t care about others. They’ll sell where most will buy and buy where most will sell. They are market makers. Let’s say they want to move a certain pair up but they want to enter at a good price and have lots of supply to fulfill their demand, they only have to dump it so everyone starts closing out their buys and they can wipe the buyers, take their positions and enter at a much better price. The only reason prices move is because the big guys decided to make it move. To be profitable in this market, you must learn to understand price action and momentum. Those are two very important aspects of technical analysis. How can you tell where the momentum of the market is heading? By understanding price action. This is where candlestick reading and correlation with indicators such as EMAs or MACD comes in hand.</p>

<p id="isPasted"><strong><em>Everyone is different, but certain qualities are common among all successful traders.</em></strong></p><p>Commitment: &nbsp;Focuses on trading exclusively. Anything that distracts from fully concentrating on the markets is set aside until after the trading day ends.</p><p>Introspection: &nbsp;Continually reassesses personal strengths and weaknesses. &nbsp;Strategies are devised to capitalize on the strengths and neutralize the weaknesses. Successful traders are less concerned with how they measure up to others, than how they measure up to the standards they set for themselves.</p><p>Self-Control and Heightened Awareness: &nbsp;Reacts with equanimity, whatever the scenario. Neither losses nor profits excite the successful trader to the point at which he cannot function in a rational manner.</p><p>Realistic: &nbsp;Establishes realistic goals. Never takes irrational chances in order to “improve” the possibility of achieving windfalls. Recognizes that traders have no personal control over the market and that losses are inevitable, no matter a trader’s ability.</p><p>Patient: &nbsp;Understands that instant gratification is rarely achieved. &nbsp;Does not chase markets. &nbsp;Knows that there will always be future opportunities.</p><p>Adaptable: &nbsp;Adjusts to changing circumstances and sudden unexpected events. &nbsp;Recognizes that a trader must operate with a set of rules, but that changes in market conditions may require a change in the rules.</p><p>Responsible: &nbsp;Doesn’t blame others for own shortcomings. Takes risk in exchange for the possibility of an appropriate reward.</p><p>Creative Thinking: &nbsp;Sees beyond the obvious. Draws ideas from a wide variety of inputs and is not afraid to do the unusual or unexpected.&nbsp;</p><p>Self-Confidence: &nbsp;Believes he/she will succeed. Does not allow losses to diminish that belief. &nbsp;Successful traders recognize that past failures cannot be erased and do not dwell on them excessively. &nbsp;They also recognize that every trade is independent of the past and offers a new opportunity to achieve a positive outcome.</p>