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Be a Specialist

The most successful traders become a specialist in three or four currency pairs, instead of trading many different currency pairs randomly.

They think like a fundamentalist, but trade like a technician. A good trader will be organized, and keep records of his or her trades. Detailed notes should accompany the trades: why did the trader decide to trade?

What happened with the trade. A great trader learns more from losing trades than winning trades: he or she will figure out what went wrong, why it went wrong, and how to avoid the mistake in the future. 

By focusing on three or four pairs instead of all of them, a trader can keep more thorough notes.

It is also easier to sift through current economic situations. Most importantly, however, it allows a thorough knowledge of those currencies, from the fundamentals to the most complex: a thorough knowledge translates to better trades and more profit for a trader that pays attention. 

Traders should begin with basic knowledge, learning the fundamentals of the market, and then of their chosen currencies.

These fundamentals are the building blocks of the trader’s future trades, so learning them is of the utmost importance. If a building is built on a faulty foundation, it will collapse.

If a trader trades on a faulty or incomplete understanding of the basics, their financial tower will collapse into a pile of debt, or at the very least crumble into a big fat zero, forcing the trader to start al over.