Forex Strategy Trading Tips: 4 Simple New Ways To Uncover Your Trading Personality

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

Understating how your personality can affect your profits can often be quite complicated because most Currency trading courses, schools, and counselors dont educate you on 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.


Uncover your risk tolerance and your risk limits:

Every person has a unique risk tolerance. In my trading career I have come across traders who would not tolerate risk at all and they would would prefer to have a money manager handle all of the trading.

On the other hand, I have met individuals that had a high risk tolerance and as a result traded 5% to 10% per trade (not what I would recommend.). Identifying your risk tolerance will assist you to comprehend the money management strategies you need to apply to your trading. Figuring out your limits will allow you to never take unreasonable judgements because you are trading outside your limits.


Find the appropriate trading style for you:

Your trading style should be selected based on your personality. In particular, 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 extremely lucrative Fx trader.


Discover your own personal motivators:

A motivator is the reason or reasons somebody for acting or behaving in a certain way. It is also the reason why we do things and take action. In Foreign exchange, people normally have two motivators. First, quite a few people are motivated by the monetary rewards they can receive from trading Foreign exchange. Second, some people become motivated because of the self satisfaction 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 money 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 effectively implement Forex strategy trading is a on going process and the more knowledgeable you became the better you will perform as a speculator.

Sincerely,
Jay Molina
Pro Forex investor & Educator