Despite being an attractive career option, Forex trading requires a very specific set of skills. Many job specifications highlight the following as key attributes for potential traders. In this post, we explain several of the key skills needed to master a career in this lucrative industry.
Good numeracy and maths
It goes without saying that a numerical mind is key in a financial role. A good level of mental maths is crucial, as it allows you to quickly weigh up how profitable (and therefore worth your time) it is for you to make an investment.
The ability to quickly weigh up options and deduce the most profitable outcomes is what separates the big earners from your average trader.
The ability to understand key themes and quickly analyse it is another crucial attribute. It’s imperative that traders understand the complex set of data that comes their way and can make sense of it at a moment’s notice.
Whether that’s looking at charts and figures or understanding how events in one country can affect the exchange rates of another seemingly unrelated currency.
Interest and knowledge of the financial markets
Having the passion and drive to keep up to date with the foreign markets will also serve you well in a career in foreign exchange. After working long hours and feeling incredibly tired, it’s this passion which will keep you going. It is people with this passion that make the difference and can reach the next level of knowledge and expertise.
Focus & Stamina
As eluded to before, a job in FX can be very demanding. A lot of mental resilience is needed to really focus on a task for long periods of time without getting distracted. If you aren’t able to do this naturally, you need to commit yourself into a distraction-free zone where you are able to best focus your energy on the trade at hand and notice any deviations from your plan.
Stamina goes hand in hand with this, as often you will need to make tough decisions under pressure, often at moments when you may be mentally tired or getting distracted. Sticking to a plan and not getting clouded by emotions (whether positive or negative) is crucial to long-term success.
The volatility of the market makes FX trading high-risk high-reward. Although many people tend to focus on the high-reward part of the sentence, they don’t give enough thought to the fact that they could lose a lot of money. Sometimes one downward turn may lead to more and it is easy to get emotional and for these things to spiral out of control.
Furthermore, investing in FX means that your money is outside of your control. Despite what predictions maybe, you only needed to look at the shock Brexit referendum result to realise that what you thought was a safe bet, has the potential to cost large sums of money. So make sure you know what you’re getting yourself into.
If you’re interested in knowing more about a career in Forex Trading and then check out our New 2 Trading™ course which gives you the perfect base to start.