Traders, to put it bluntly, are simply us: Americans, Russians, Japanese, Chinese, light and dark skinned, civilized and not, tall and short, rich and poor, young and old. The majority of traders started Forex market trading to earn some money, and no wonder. We all constantly want something: a new car, a modern smartphone, the latest model of the MacBook or even the initial capital to start our own business.
However, there are people that consider the Forex market to be their hobby, to kill time in the evenings, or to stimulate their intellect, or as a tool to stay informed about economic news and events. Whatever your aim is – welcome to our society of traders!
It may seem that there is nothing unusual about us. So why should we devote a whole chapter to traders? We do it in order for you to know the problems a trader can face on the market. Traders are one of the most important parts of the Forex market. There would be no trading at all without traders. So here we deal with our characters and psychology because these factors can make the difference between success and failure in trading.
Experience. Experience is, of course, very important in any type of business.
Trading style. Different traders develop different trading styles. One type might open a position for just 5 seconds before closing; another might keep a position open for weeks. Some traders risk large parts of their capital whilst others are more cautious. One trader uses fundamental analysis; the other combines 20 different methods of technical and wave analysis. Gradually you will develop your own natural style.
Psychology. This is a very important factor which we will look at more closely in this chapter. It is worth mentioning in the beginning that poor psychology applied to just a few trades can quickly spoil years of experience and a brilliant trading strategy!