
Your mindset is one of the most important skills in your forex trading strategy arsenal, yet it’s also the most often ignored and underdeveloped weapon 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 and your family will have, and whether you are able to finally quit your job or not, you’ll see that investing time in mastering your mindset is vital.
After talking with many successful and unsuccessful forex traders I’ve noticed there are really only two trading mindsets: Independent trader and dependent trader. The mindset you take on and enhance will have a far-reaching and long-lasting impact on your financial future.
You might be thinking something as simple as mindset couldn’t have that much of an impact on your success, however the fact is almost all successful forex trader gives credit to their mindset as the foundation for their results. So if you’re just getting started in forex, or not as successful as you’d like to be, then taking the time to improve your mindset might be the most important decision you make this year.
Let’s see the effects your mindset has on your chances of success.
The first thing you need to understand, is the less work or skill something requires, the smaller and less consistent the results will be. However, if something requires you to use your brain, think for yourself, and act on your own, then the chances of it producing bigger more consistent results is much greater. This is never more true than in trading forex.
Dependent traders are looking for the magic button. They don’t want to put any work or thought 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 necessary.
You can identify a dependent trader quite easily because they will be jumping from one program to another, they’ll follow the crowd and place trades based on “can’t lose” advice or “insider” info, blindly make bets they are convinced cannot fail… always looking for an easier way to get rich yet never learning the basics of trading.
And what happens is 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 rarely reach their financial goals.
Independent traders are the total opposite of dependent traders. The independent trader realizes that to live a life of financial security and prosperity requires effort. He realizes the opportunity before him is huge, and that it takes guts and skill to master, not luck.
This trader is willing to put the work in and learn how the financial markets work, how to approach trading with the mindset of a winner, and how to rely on themselves to make trading decisions without blindly following others.
This trader knows his best chance of achieving his goals and reaching financial independence through forex trading comes from himself. They will become lifelong students, continually educating themselves, looking for mentors, learning from others, and always striving 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 exhibit traits from both mindsets. Even [the most successful] independent traders have a little dependent trader in them at some point in their life. 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 grows they will begin to apply what they’ve learned on their own. The dependent trader will never get there.
Luckily the path to becoming an independent trader is actually very simple, and with a few quick steps you can be on your way to a trading mindset that can dramatically improve your financial future.
Step 1: Create a trading plan and execute it consistently. Figure out the best time for trading that fits in with your daily schedule and stick to it. Focus on one Forex Training Course at a time and don’t get fancy with them until you understand the fundamentals and are making money on a consistent basis.
Step 2: Hunt down 2 or 3 trading teachers that resonate with you. Learn and take in everything you can from these teachers and ignore 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 methodology and can apply it on your own, you can begin to learn from and experiment with other trading strategies. Integrate 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.
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. Investing in yourself and your financial future is always a goo investment you should make over and over again.
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