Money management combined with a successful market strategy is very crucial for successful trading. As this helps the trader to take out the emotional and psychological aspects and make money over the long term. All the other things come next.
You have to be really careful while building your trading strategies. Do mention your entry and exit points clearly and follow them when you are in the live market. Understand the importance of not getting distracted from your trades and stick to what you have already decided instead of deviating from what you were already doing.
To add to my earlier answer I also think the ability to fit in around your lifestyle and time constraints is vital. Trading is something that takes a lot of time to get right. If you can't get it to fit around your life you will burn out and lose interest more quickly.
If you can't spot the liquidity then you are the liquidity.
I think that all traders have to be glad with their results, because when a trader isn't happy with the result, then he/she lets the emotions take the control over him/her. If we speak about these aspects, then I would note that traders should wiesely approach to the task of describing their opinion toward these aspects. Of course, today traders aren't able to learn and practice, because they're eager to receive fast money. However, I believe that there is no fast money in trading at all. The main feature of trading activity is the ability to develop your skills until you become a real professional.
Well, in my opinion, the right combination of all these factors lead to success in forex trading. Most importantly, risk management and expectancy play key roles in determining trades and success while trading. It is essential to analyse a number of factors before making trades in order to minimise losses and be a long-term player in this field.
No doubt these are some important aspects and should be included in your trading plan. Trading plan acts as your roadmap and when you mention your risk tolerance, expectancy, Risk to reward ratio, drawdown etc in it you are able to follow it efficiently.
I have large drawdowns but the reason I have $500k account is that I use VERY high-risk reward ratios. As high as 55 times. This level cannot be achieved without knowing the target price with absolute certainty. Once I was able to target price reversals 100s or pips in advance sometimes even 1200 pips as with EURNZD I can set high-Risk Rewards. See the past charts that I have not removed yet.
Sticking to your strategy is as important as building one. From knowing how much to risk per trade to knowing when to exit a trade, everything matters when you are trying to build a successful trading career.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.