Forex Strategy Trading Tips: 4 Straightforward Techniques to Uncover Your Trading Personality

Most Forex investors do not understand the fact that their personality will have a high influence on their trading career. Regardless if you are a discretionary trader who takes all his trades manually or you use automated Forex strategy trading systems, your personality will have an effect on your trading success.

Understating how your personality can impact your revenue can often be pretty hard because most Forex programmes, schools, and advisors don’t 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 restraints:

Each and every investor has a different risk threshold. In my trading career I have run into traders who would not tolerate risk at all and they would choose to have a money manager handle all of the trading.
In contrast, I have met people that had a high risk tolerance and therefore traded 5% to 10% per trade (not what I would recommend.). Identifying your risk tolerance will help you to understand the money management methods you need to apply to your trading. Understanding your limits will allow you to never take illogical judgements because you are trading beyond your limits.
Find the appropriate trading style for you:

Your trading style should be picked based on your personality. To illustrate, 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 create a balance between your trading career and your personality you will increase your chances to become a very profitable Fx trader.
Uncover your own motivators:

A motivator is the reason or reasons anybody for acting or behaving in a particular way. It is also the reason why we do things and take action. In Forex trading, people normally have two motivators. First, many people are inspired by the monetary rewards they can receive from trading Foreign currency trading. Second, a lot of people become inspired because of the self achievement 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 completely in sync with the markets and you are able to trade the markets profitably, maintain 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 educated you became the better you will perform as a speculator.

All the best,

Jay Molinar
Pro Forex Trader & Educator