**Forex** **Habits of successful forex traders**\\ \\ Discover 20 habits of successful forex traders and incorporate them into your own trading strategy and plan.\\ \\ Read more →

[](https://my.axi-solaris.com/login)[](https://clientportal.axi-solaris.com/) [Home](https://www.axi-solaris.com/eu) / [Blog](https://www.axi-solaris.com/eu/blog) / [Education](https://www.axi-solaris.com/eu/blog/education) / [Forex](https://www.axi-solaris.com/eu/blog/education/forex) / Habits of Successful Forex Traders # Habits of successful forex traders ###### Forex / ###### [Milan Cutkovic](https://www.axi-solaris.com/eu/blog/authors/milan-cutkovic) - [Habits](https://www.axi-solaris.com/eu/search-results?stype=blogtags&search=Habits) - [Successful](https://www.axi-solaris.com/eu/search-results?stype=blogtags&search=Successful) - [Forex](https://www.axi-solaris.com/eu/search-results?stype=blogtags&search=Forex) - [Traders](https://www.axi-solaris.com/eu/search-results?stype=blogtags&search=Traders)  Many people are attracted to forex trading because of the perceived lifestyle that goes with successful trading – images of fast cars, luxurious holidays, or trading in some exotic places around the world. But becoming successful in this market takes dedication and hard work. Somesuccessful traders may show off their rewards but they don’t always tell you about the years of effort they put in before they found success. The fact is, like in any other profession or endeavour, becoming a successful forex trader takes time. If you are just starting out in the forex market or have been [forex trading](https://www.axi-solaris.com/eu/blog/education/forex/forex-trading-guide) for a while and need some extra tips, then this article is for you. We have built a list of habits that successful forex traders incorporate into their trading plans. ## Discover our list of 20 habits of successful forex traders: ### 1\. Be a constant learner One thing that all the best and most successful forex traders have in common is an ongoing curiosity and the love of learning new things. So, if you want to be a successful FX trader, you need to constantly learn new things about trading and the market. The forex market is one of the most dynamic and active markets in the world, so you have to be on top of what’s happening and what’s affecting it. Markets are constantly changing, so there will be times when you will have to adapt your trading strategy.  ### 2\. Be proactive In his best-selling book ‘7 Habits of Highly Effective People’ Stephen Covey said being proactive is an important part of one’s success. As a trader, being proactive means taking action – doing something or doing the things that will contribute to your success as a trader. Here are a few examples of the proactive things you can do to help your trading: - Setting up a daily routine to help you become more efficient with your trading - Set aside time for learning and training – e.g. trading webinars, [learning technical analysis](https://www.axi-solaris.com/eu/blog/education/technical-analysis), [trading education](https://www.axi-solaris.com/eu/blog/education) - Reviewing [chart patterns](https://www.axi-solaris.com/eu/blog/education/forex/forex-charts) - Testing and refining trading strategies - Subscribing to or following successful traders like Brett Steenbarger, Steve Ward, Nial Fuller - Keeping track and monitoring the global markets will also help your trading, so make it a habit to regularly check news sources like Bloomberg and CNBC ### 3\. Develop a trading plan You’re probably aware of the saying ‘failing to plan is planning to fail’. Though it might sound cliché, it’s true and it’s a very important component for trading success. Whether you’re a new trader or someone who has been trading the markets for years, you need a [trading plan](https://www.axi-solaris.com/eu/blog/education/trading-plan) that should be your guide in everything you do. A trading plan doesn't need to be complicated. It can include some basic guidelines like: - Entry and exit levels - Position size - Stop-loss level - [Take profit](https://www.axi-solaris.com/eu/blog/education/profit-taking-strategies) level - Indicators to use to confirm your entry and exit While having a trading plan is important, it’s also equally important to have the discipline to stick to and implement it. Otherwise, what’s the point of having a plan if you’re going to ignore it? So, remember, if you have a trading plan it’s best to stick to it. ### 4\. Control your emotions It’s been said that fear and greed are the two strongest emotions that drive the markets. Fear of missing out on a trade usually drives forex traders to jump into a trade without prior validation. And, at times, getting into a trade hastily can result in losses if it turns against you. Greed is also something to watch and control. It can fuel your desire to chase multiple trades (over trading) or to allocate too much of your capital in a single trade. In either scenario, you put your trading capital in jeopardy if greed takes over. If you want to become a successful trader, it is critical you put your emotions in check as much as possible. So, before you hit the button to confirm a trade, take a moment to think whether the trade is the right one by considering the following questions: - Does it fit within your strategy? - Is it within your limits of risk? - Do you understand what it means if this trade goes against you? ### 5\. Develop a risk management strategy Every successful trader will tell you that trading is all about risk management. And it’s true, your success as a trader will depend largely on how robust your risk management is. At its basic level, risk management can be boiled down to a few components. Here are some items to consider when building your [risk management strategy](https://www.axi-solaris.com/eu/blog/education/forex/forex-risk-management-trading-strategies): - How much capital to allocate per trade? - How much capital to risk per trade? - What is your stop loss level? - What is your take profit level? - How much [leverage](https://www.axi-solaris.com/eu/blog/education/leverage-trading) to use per trade? One of the best words of advice for traders is to preserve your capital. By protecting your trading capital, you’ll be able to trade the next day. ### 6\. Start with a demo trading account While most people want to rush into trading to have a taste of success right away, it’s advisable to start small and slowly. This is particularly true if you’re new to forex trading where one of the best things you can do is start with a [demo trading account](https://www.axi-solaris.com/eu/blog/education/demo-account). Using a demo account brings several benefits, such as: - Opportunity to familiarise yourself with the trading platform and different trading products - Start testing different trading strategies without committing real money upfront - Gain confidence in placing trades ### 7\. Practice money management techniques Beginners usually learn the hardway that money management is one of the most important factors that contribute to your success as a trader. Having a successfulstrategy will not help if you fail to have sound money management rules in place. The goal is to maximise gains and [minimise](https://www.axi-solaris.com/eu/blog/education/trading-losses)[losses](https://www.axi-solaris.com/eu/blog/education/trading-losses). Before entering atrade, you should already know how much you are willing torisk on it and how much the potential profit is. While it is impossible to eliminate emotions from trading completely, [money](https://www.axi-solaris.com/eu/blog/education/money-management-trading-strategies)[management strategies](https://www.axi-solaris.com/eu/blog/education/money-management-trading-strategies) can help you con