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Which trader’s qualities bring success on the market?

Each person who has been trading on Forex for some time starts to understand that the currency markets looks like a big complicated organism which lives by its own laws. Yes, they don’t allow to predict the development of the situation with 100% accuracy but anyway the patterns are so evident and are repeated so often that when controlling the losses, one can earn here quite easily and much. The main thing is to understand which qualities are necessary for a traders and how can they be used to their advantages.

Then, many decisions can be made almost on the intuitive level which can be confirmed by each experienced trader. When telling the history of their success, all large currency speculators mention that at some moment they start looking at the market not with their brain, but from their heart. Then the trading comes to a new level and brings a good income on a regular basis.

 

How the primary instincts are implemented

In order to understand which trader’s qualities shall be developed, we must take into account how the primary instincts of a person work as people, or rather the crowd play the basic part in where the price will go. Trader’s instincts are based on the most primary reflexes which were peculiar for ancient people. Our cave arch fathers were hungry and went to get food. In the cases when the prey was big or the predators were interfering, they were united with their common interests forming the very same crowd. A trader is also in the wild conditions of the market and he is moved by the desire to get money for food or something else. Here he is also hunting for profits like a caveman for prey.

When continuing with the basic qualities, it is worth mentioning that every action of a speculator has a goal to satisfy one of its material needs. When one of such actions brings losses (a stop plays out) it is equal to, as if an ancient person came across some significant obstacle in the process of getting food. At that, some big losses of a trader may be compared with the fact when a hunter totally loses the possibility to get food. In such cases a speculator usually remembers the lesson well, which on the level of instincts shall not allow him to repeat it, which is sometimes not good at all.

In the cases when the deal ends with profits, an inner hunter rejoices, remembers the situation and wants to repeat it again and again. The trading consists of an alternation of such successful and unsuccessful hunting results which form its attitude to the Forex market and situations on it.

 

Intelligence

While we understand what ancient power is sleeping inside of everyone, we need to learn how to control them in order not to allow the fear of losses to cloud the mind preventing the further success. For this, a trader must rely on his intelligence which is intended to temperate unconscious actions imposed by instinct. This process always takes some time as the mind needs facts for the analysis. After studying them carefully and making right conclusions, you can develop a set of personal rules according to our specific qualities, because mainly living people work on Forex and they often experience similar feelings in particular situations.

 

Intuition

Finally it is worth talking about what place the intuition takes among the mandatory qualities of a trader. According to some persons, the intuition presents spontaneous decisions based on big experience. But will this statement be true? Yes, the experience is very important, however, it doesn’t explain the phenomenon of intuition. In favor of this there is regularity, according to which the beginners in their first deals may intuitively make deals better than experts who are loaded with experience.

In the modern trading there is software for analyzing the situation based on the set of basic rules of technical analysis, or the possibility to develop oneself (neural networks). Both of these species use the gained experience for forecasting. The process of analysis itself is similar to the one used by the trader. It means, in the basis there is the use of instinct and intelligence. Creating a program which could develop intuition on this basis is just impossible, because logic cannot explain where the intuition comes from. So, it is at least wrong to suppose that for an intuitive decision the experience is necessary. On the basis of such conclusions many people assert with confidence that among the significant qualities of the trader the intuition has no place. But it isn’t so!

If we try to remember, each person can easily describe at least ten cases when the intuition has helped him. For example, somebody takes an umbrella with him although there are no clouds in the sky. Another person standing on a bus stop knows exactly that the transport he needs will come to him now etc. Thousands of such cases can be described even without any efforts.

Some people will argue that if you set right data for the computer program, it can also make a right conclusion regarding taking an umbrella or whether a bus with the right number will come. For such tasks you even don’t need a high-powered computer, but the correctness of its conclusions will depend for 100% on the fact that it has received all the necessary information. But a person who has immediately made a right decision simply didn’t have such information.

In addition, we can look at all this from a different angle. For example, the chess game. There one can set into the computer program all variants of actions as all conditions are strictly defined in the frames of a closed system. But even such best program will not always beat a human grandmaster. But what is the thing? A person, who consciously directs and develops its ability of intuitive perception, develops it in some way, which opens new possibilities for making right decisions.

 

Use of personal qualities

Each person can easily define how much his intuition in trading, for example, is developed. For this, it is enough to open any price diagram and after looking at it say where it will go further. The result should be written down and later compared with the reality. Of course, it will be wrong to use such approach in practice before its value is established but at a positive result it is worth thinking of.

For the purity of the experiment it is worth exercising with different mood and different actives. If the accuracy of the forecasts is 70-80%, this is already a weighty argument for the practical value. Of course, one shouldn’t rely only on intuition as it is too risky; after all money is at stake and sometimes not so little. However, if you combine it with instincts and intelligence providing the entrance in potentially profitable situations with a short stop, then such symbiosis may become a key to success.

In the end, I would like to mention one of the most notorious traders of the world – George Soros who had almost alone put the economics of Great Britain under a severe blow playing on the fall of the pound. He uses to say that his trading ideas are always the result of intuition. At that, his instincts never allow him risking a significant amount of money when checking the ideas in practice. Allocated some money, with the use of the intelligence he checks the hypotheses and finds logical confirmations for his intuitive conclusions and then he acts at full steam. If the idea wasn’t confirmed, he immediately forgets about it and tries to generate a new one. A perfect sample of how particular qualities of a trader merge together to achieve success!