Narrowing down the scope of subjects or fields you need to focus on and master can make you a successful forex trader over the long haul. Oftentimes, beginners try to suck in all the information they can about the forex market through books, online posts, and even pricey training programs. This is a great showcase of enthusiasm, yet is something that does not benefit you as a trader. Here are key educational fields you need to masterfully wield to succeed as a trader.
Risk management is done differently from trader to trader. Some use algorithms to minimize risk while others manually manage their positions. Risk management is the single most important constant in trading success. Acknowledge the fact that you will be wrong most of the time and that you will lose some money in the process. Only after you’ve genuinely accepted these facts can you become a professional trader.
Terms like Long, Short, Spread, Rollover Rate, and Hedge should be something you understand at a proficient level. This will allow you to parse data more accurately and give you the confidence to participate in the active trading community. Memorize at least one term every day, make a list of all trading jargon, and post it in your trading desk.