What exactly is the task or job to do as a forex trader?
What is a trader supposed to do?
What is the description of a trader’s job?
What sentence do you think can describe the main task of a trader?
Have you ever thought of the right answer to the question above?
Yes, it seems a trivial thing, but by knowing the answers to these questions, you will get an idea, about how and what to do to become a (good) trader to achieve consistent success.
What do you think? Before continuing to read this article, I ask you to think for a moment, what answer would you give to answer this question. Ok, have you found the answer? Wow, how fast! .. I myself frankly took months, even more than a year to find an answer that I think is right to answer the question above. Mm… maybe I’m the slow one… hehe! Yes, it’s good if you can get the answer that you think is right to answer the question above, in just a few seconds. Now, let’s see, maybe one of the following sentences represents your answer. To earn a few pips per month. Oh, okay… if that’s your goal or target. But isn’t this just the result of achieving your main goal as a trader? Because this is a target, it is certainly different from the task of a forex trader. Manage risk. Yups, yes, indeed, to be able to survive as a trader, we must be good at managing risk. Accepting the fact that in the market there is always a risk of loss and taking steps to overcome it is mandatory. Develop capital. Yes, just as we must manage risk to survive in this cruel world of forex trading. we really need to develop the capital we have invested. Of course, as rational investors, we must consider whether forex trading can be economically profitable. And to be said to be economically profitable, of course, capital must experience positive growth. To profit from every position we take. Wow, this one can be said to be mission impossible. No one knows for sure what will happen in the market. Even seasoned traders with giant capital like George Soros can suffer losses. So never expect every position we take will always bring profit. To get X percent of income from capital per month. Mmm … this is more or less the same as answer number one. The name of the target, of course, is not the task of the forex trader. To become a psychologically mature forex trader. Wow! That’s great! The masters say that trading is very closely related to the psychological aspect. Well, but if you do manage to achieve your goals in trading, it means you are not in trouble from this psychological aspect. So, what’s the right answer?
The Real Task of a Forex Trader Mm… How about I answer with a simpler answer: the task of a forex trader is to follow the trading plan that we have made? Eh, ouch, don’t sulk just yet. This is what the masters say. Well, with the aim of following this trading plan, it means that there are several points that we must do. First of all, what is clear is that you must have a trading plan to follow. So, you don’t have a trading plan yet? Yes, do it first. Well, once you have a trading plan, that means you already have a benchmark about what you should do and what decisions you should make in relation to your trading. What’s that? Ok, let’s see! In your trading plan, of course, you have determined the following: In what currency pairs will you trade? When will you enter the market (open position)? What is the benchmark indicator or trading system that you follow? When did you exit the market (close position)? What is your benchmark for closing positions? How do you handle risk? How do you set a stop loss for each position? What percentage of margin do you use? Will you be trading when the news release? Would you leave positions open on weekends? Yes, the fast movement of news releases is indeed quite tempting to pass up. But, along with the potential for high profits, there is also the risk of being run over by rapid price movements. So? Will you participate in enlivening the market during the news release, or will you rush to close the shop during the turbulent market during the news release? That’s your choice.