Forex Strategy Trading Tips: 4 Effortless Strategies to Uncover Your Trading Personality

Most Forex investors hardly understand the fact that their personality will have a high influence on their trading career. Whether you are a discretionary trader who takes all his trades by hand or you use automated Forex strategy trading systems, your personality will influence your trading success.

Understating how your unique personality can impact your revenue can often be fairly difficult because most Forex courses, 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.

Discover your risk threshold and your risk limits:

 Each and every investor has a different risk tolerance. In my trading career I have run into traders who would not tolerate risk at all and they would prefer to have a money manager handle all of the trading.

On the flip side, I have met individuals who had a high-risk threshold and consequently traded 5% to 10% per trade (not what I would recommend.). Identifying your risk tolerance will assist you to comprehend the money management tactics you need to apply to your trading. Knowing your limits will allow you to never take unreasonable decisions because you are trading beyond your limits.

Find the appropriate trading style for you:

Your trading style should be determined based on your personality. As an illustration, 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 choosing a trading style that helps you to develop a balance between your trading career and your personality you will increase your chances to become a quite profitable Trader.

Discover your own personal motivators:

 A motivator is the reason or reasons somebody for acting or behaving in a specific way. It is also the reason why we all do things and take action. In Foreign exchange trading, people normally have two motivators. First, a number of people are inspired by the monetary rewards they can receive from trading Foreign exchange. Second, some individuals 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, maintain 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 properly implement Forex strategytrading is a on going process and the more informed you became the better you will perform as a trader.