All goals that are rare, unique, and special in the world require a lot of effort and struggle. As there is no market which is more financially rewarding than the forex market, it is only natural that foreign exchange trading is going to be full of obstacles and hindrances.
In fact, only about five percent of people actually end up making a career in foreign exchange trading which should show you your chances in the market. However, this aspect of the market should be tempered by the knowledge that the 95 percent who fail do so because they do not work on acquiring the attributes crucial for success.
Proper Financial Capitalisation
Even though it is true that you can start small and make it big through foreign exchange trading, your small start will become an added obstacle that you will have to cope with. Therefore, it is important that you wait to dive into the forex market until you have accumulated a sum of money that will improve your chances.
Commitment and Dedication
As trading foreign exchange is technically a form of speculation, it can be equated to starting a business. In fact, a trader must treat forex trading as he would his business because without the same kind of commitment and dedication he would not be able to overcome any of the obstacles in the market.
Low Risk Tolerance
The forex market is an extremely dangerous place for a person who likes a lot of excitement and enjoys the thrill of taking risks. Such an individual would soon be wiped out by the market because sooner or later he would go too far with the risks he takes. This is why you need to develop a low risk tolerance in the forex market if you want to succeed in foreign exchange trading.
Objective and Careful
Having a low risk tolerance does not mean that the trader does not take risks in the market because without taking risks your returns will not be much. Therefore, you will have to take risks but try to control them in a way that, even if they come to pass, your losses are not significant. This requires a lot of objectivity about the market and a careful attitude.
An impulsive and compulsive individual would never survive in foreign exchange trading. His on the spot decisions would mean that he is not objective and he will start losing money. On the other hand, an emotionally secure individual will not only survive but prosper in the market.
Meticulous and Organised
Because there are so many obstacles and unforeseeable situations in foreign exchange trading, planning everything in advance gains a lot of importance. Moreover, because the market has the potential to be extremely inconsistent, you, as the trader, must be as consistent as you can be in your actions.
Your consistency should be able to counter the inconsistency of the market. Unfortunately, you cannot be consistent in the market without being meticulous and organised.