Your mindset is perhaps the most critical skills in your forex trading strategy arsenal, yet it’s unfortunately the most misunderstood and underutilized 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 spending time in improving your mindset is vital.
Having spoken with dozens of amateur and professional traders I’ve noticed there are essentially 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.
Some people think something as basic as mindset couldn’t have that much of an impact on your success, however the fact is almost all successful forex trader credits their mindset as one of the keys to their success. And if you’re just getting started in forex, or have not gotten the results you would like, then taking the time to work on your mindset may just be the positive boost you need to break through the plateau.
Let’s see the effects your mindset has on your chances of success.
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, 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 always hunting for the miracle solution. 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 make some quick cash with as little work as necessary.
You can identify a dependent trader quite easily because they’ll be jumping from one program to the next, they’ll follow the herd and trade based on “can’t lose” advice or “insider” info, blindly place trades they are convinced cannot fail… always looking for an easier way to make money yet never really understanding the fundamentals of how to do it.
And what happens is they lose big. They become annoyed and confused, convinced that trading forex doesn’t work, and they give up.
Dependent traders have the lottery ticket mindset. They think they can get lucky no matter what the odds of failure. And it comes as no shock that they have little chance for long term financial success.
Independent traders are the total opposite of dependent traders. The independent trader understands that to live life on your terms and be financially free takes effort. He understands the opportunity in front of him is immense, and that it takes hard work, determination and effort 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 within. They will become lifelong students, continually educating themselves, looking for mentors, learning from other traders, and always striving to be the most complete trader they can be.
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 go on to great success, 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.
The good news is the road to becoming an independent trader is actually quite easy, 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: Establish a trading plan and execute it consistently. Determine a time for trading that slots in with your daily schedule and make sure you adhere 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 regular basis.
Step 2: Find 2 or 3 trading teachers that resonate with you. Learn and absorb everything you can from these teachers and put aside anything else. The goal here is to become proficient with one methodology so that you can use it successfully on your own.
Step 3: When you have mastered one trading methodology and are applying it on your own, you can begin to learn from and play around with other trading methods. 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.
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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