Almost every trader has heard that psychology and mindset can make or break your success in trading. But how you develop a successful mindset? In this article I continue to discuss the necessary steps to develop a mindset that can help you to succeed in your trading.
One of the fundamentals of success in any business is having a clear goal. Before your start doing anything, try to find out why are you doing it.
Now if you apply it to Forex trading you should formulate your goals clearly. Things like "I want to be rich", "I want to have a lot of money" will not do. Ask yourself a question how much money do you need and why do you need that much money. What do you want to spend that money on? Write down your goals on paper. You may keep it for yourself. You don't have to show it to anyone else.
The major obstacle is trader himself.
It is not so hard to learn to work with the trading software and study the market. It is not so hard to develop an intuition for the market although it may take some time. But to control your emotions following through with your trading decisions is much more challenging task.
There is a well known test that will show the importance of the mindset. Put 10 inches wide deck on the ground and walk on it. It's easy if you know how to walk. Now put that deck on 100 foot height. The task is the same to walk on it but will you feel the difference? What did we change? The only thing changed is the imaginary outcome of the situation in case of an error. That's the psychological factor. That's why I consider trading on a demo account only as a tool to learn the interface of trading software. I am skeptical about all the bragging of new traders about successful trading on a demo account.
The right mindset towards making money
Money should not be your goal. It can be only means to achieve your goals. If your make money your goal you are setting yourself up to a failure. I think any activity in the name of making money can be destructive if your disregard your own nature. I don't mean that money is bad. It's just a reflection of the value you provide to other people. I believe that a way of making a lot of money without giving back to the society is a destructive way to live. The only way money will bring your satisfaction if they reflect the value of the work you do to the world. With such mindset money will follow.
Albert Schmidt is a part-time currency trader. After quite a long time of struggle he learned to make consistent profit trading in Forex. Review a trading strategy he successfully uses in his trades. |
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