When it comes to what successful forex traders have most in common, it has very little to do with their actual trading methodology or informational focus. Instead, their recipe for success has much more to do with the mindset with which they approach their trading activities.

Some experts on the subject even consider that a trader's mindset accounts for up to 80% of what ultimately makes that trader successful or a failure at the endeavor. When you consider that this mindset has a powerful impact on how traders take and liquidate positions, the strength of its influence can perhaps become more understandable.

In essence, if you want to trade successfully, then pay some close attention to how exceptionally profitable traders have achieved their trading gains and managed their risk over the years.

Let Your Profits Run On

One of the most famous trading maxims on Wall Street simply has to be "Let your profits run on."  This phrase basically encourages traders to allow their profits to accumulate, without rushing to take their profits, since trends can sometimes run for months at a time.

As an example of a classic trading mindset primed for success, you cannot get much better than what this time-tested maxim encapsulates.

Of course, you will probably want to incorporate some prudent risk management strategies to prevent accumulated gains from being dashed away by a sharp market reversal.

Many successful traders employ trailing stops for this purpose that they move up to breakeven and then beyond as profits accrue on winning trading positions.

Cut Your Losses Short

Another of the most popular trading maxims on Wall Street that often comes right along after the previous saying is "Cut Your Losses Short."  This saying means that when a trader is proven wrong by the market, they should take their losses early on to avoid having them turn into far more painful losses that can blow out a trading portfolio.

Sometimes a successful trader will need to cut short several losing trades in a row in order to take one winning trade worth following for substantial gains that can far more than compensate for the string of small losses.

This form of highly disciplined trading mindset has been proven successful in a live trading environment again and again.  Not only does this mindset involve having the flexibility to admit that you were wrong on a trade, but it also means that the trader has developed the patience necessary to hold a winning position rather than taking a profit on it as soon as they see it.

Plan Your Trade and Trade Your Plan

Another notable common point among the mindsets of the most successful traders is the fact that they have taken the time to develop a profitable trading system or plan. They will also most likely have cultivated the confidence in the plan required to stick with it in a disciplined way.

Basically, the forex market can be fickle and difficult to call at times, often moving up one day and down the next. As a result, having a comprehensive written and fully objective trading plan that you can rely on to direct your trading activities through all foreseeable circumstances has distinct benefits over trading on whims or gut feelings.

Not only should a good trading plan tell you what to do or what not to do under virtually any market condition, but it will also help you manage your emotional reactions to trading that can seriously impact your trading profitability if you unwisely allow them to run your trading business for you.

Overall, if you want to be successful as a forex trader, then you will do well to take heed of the sage advice and disciplined trading mindset of the many extraordinary traders who have played the trading game before you and have profited consistently at it over the years.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.