Will Your Mindset Affect Your Forex Trades?
Your mindset is one of the most critical weapons in your forex trading strategy arsenal, yet it’s unfortunately the most often ignored and underdeveloped skill most forex traders have.
Once you understand a small change in your mindset can quickly and dramatically affect how much money you make trading, how quickly you make it, what kind of lifestyle you’ll have, and even if you are able to go full time in forex or not, you’ll understand that spending time in mastering your mindset is vital.
After talking with many successful and unsuccessful forex traders I’ve discovered there are essentially 2 trading mindsets: Independent trader and dependent trader. Which mindset you take on and enhance will have a huge effect on your financial future.
Some people think something as basic as mindset couldn’t make that much difference to your success, but it’s true that almost every successful forex trader credits their mindset as the foundation for their results. And if you’re just getting started in forex, or not as successful as you’d like to be, then taking the initiative to work on your mindset may just be the positive boost you need to break through the plateau.
Now let’s take a look at each mindset and the effects they can have on your results.
First, please remember that if something requires little or no effort on your part, then it will produce limited or temporary results. On the other hand, if something requires you to use your brain, think for yourself, and act on your own, it is much more likely to produce long-lasting consistent results. This is never more true than in trading forex.
Dependent traders are always hunting for the miracle solution. They don’t want to invest time or brain power into their trades. They don’t want to put in any effort. They just want to get a quick win with as little effort as possible.
You can spot a dependent trader rather easily because they will be jumping from one program to another, they’ll follow the herd and place trades based on “can’t lose” advice or “insider” information, blindly make trades they are convinced cannot lose… always looking for an easier way to get rich yet never really understanding the fundamentals of how to do it.
Of course, what happens is they do lose. And they lose big. They become frustrated, convinced that trading forex is just a big scam, and they give up.
Dependent traders have the same mindset as someone who buys lottery tickets. They think they can get lucky no matter what the odds of failure. And it comes as no shock that dependent traders have little chance for long term financial success.
Independent traders are the complete opposite of dependent traders. The independent trader realizes that to live a life of financial security and prosperity requires effort. He understands the opportunity before him is immense, and that it takes guts and skill to master, not luck.
This trader is comfortable taking the time to learn how the financial markets work, how to trade with the winners mindset, and how to rely on themselves to make trading decisions without blindly following others.
The independent trader knows the best odds for realizing their dreams and reaching financial independence through forex trading comes from himself. They will become lifelong students, continually educating themselves, seeking out mentors, learning from other traders, and always working to become the most complete trader they can be.
Now, while it’s obvious you want to become an independent trader, you should know that most people have traits from both mindsets. Even [the most successful] independent traders have a little dependent trader in them at some stage. What makes the difference between those that get stuck being dependent and those that become independant and make a lot of money, is as the independent trader’s knowledge expands they will begin to use what they’ve learned all by themselves. The dependent trader will never get there.
Luckily the path to becoming an independent trader is realy very easy, and with a few simple steps you can start a change in your mindset that will greatly impact your future.
Step 1: Establish a trading plan and execute it consistently. Figure out a time for trading that slots in with your daily schedule and stick to it. Focus on one Forex Training Course at a time and don’t get creative with them until you have a strong working knowledge of the fundamentals and are making money on a consistent basis.
Step 2: Find 2 or 3 sources of trading wisdom that resonate with you. Learn and take in everything you can from these teachers and put aside anything else. Your goal here is to get good at one methodology so that you can apply it on your own.
Step 3: When you have mastered one trading method and can apply it on your own, start to learn from and play around with other trading strategies. Combine what your learn into your own trading system and soon you will have a system that is entirely your own and produces better results for you than anything else ever could.
Consider these steps an investment in your financial future. The steps require a little time, money and effort, and you can feel good knowing this is the extra effort that most people simple aren’t willing to give that makes all the difference. An investment in yourself is never a bad investment.
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