First and foremost, instilling the values, morals, discipline, and patience required to become a consistently profitable Forex trader is undeniably difficult, however, is it the Forex market that makes things challenging, or could you be the problem?
Don’t answer. You’ll look like a fool talking to your screen, and I already know the answer.
But don’t worry, not all is lost just yet!
Let me walk you through some basics of what the life-cycle of a consistently profitable Forex trader really looks like.
So let me guess, you’ve just begun trading in the FX market and you’re absolutely beaming at the thought of being a consistently profitable trader although you’re totally clueless on where to start.
Am I right?
Rookie traders believe the FX market is all about profitable systems and strategies. They are consistent to a fault, not in trading profits, but in their search for that holy grail trading system that’ll take them from $1000 to $100,000 to $1,000,000 in a blink of an eye.
Now, what if I told you, that no such thing exists?
Shocking, I know!
So if you’re tired of the lies and the BS, like I am, let me tell you the honest-to-god truth about Forex trading.
There are a ton of profitable Forex trading strategies out there. If I had a pound for every profitable trading strategy in the markets, I wouldn’t even need to bother profiting from the Forex Market for an income. Seriously. But as you may have guessed, it’s not that simple.
The problem with junior FX traders isn’t the system they’re using (although sometimes it could be a part of it), it is their psychological roadblocks, unrealistic expectations, and unreachable goals that hinder their overall performance.
What took me from rags to riches (riches being taken with a pinch of salt, mind you) was the ability to improve my emotional intelligence. Yes, really.
It is crucial to remember that there are risks involved in any and every business; whether you are a lawyer, penguinologist, mattress jumper, or a Forex trader.
It’s simply a part of a it. That’s how it’s always been, and that’s how it will continue to be.
Our job whilst trading the markets, however, is one thing only – capital protection.
What do you mean capital protection, I hear you scream?
Every Forex trader’s job whilst inside the markets is to protect their accounts from being wiped out. We need to become master risk managers, capital protection specialists and in return, this will generate the profits we seek. If we do everything in our power to ensure whatever trade we’re eyeing up is ripe for the taking, then away we go!
However, this isn’t about the system we use or the rules we have in place, is it?
So how you say that this is a psychological problem?
Well, I would bet all my Bingo loyalty points on the fact that you have fallen trap of exiting trades early due to the fear of losing.
We’ve all been there at some point but here’s the thing, there’s no need to fear losing at all!
Why? Let’s paint a picture.
You lost a trade but you followed all your rules and criteria; you checked the price was trading beneath the major support level or above the major resistance level, and you followed your system’s checklist. After checking, you double and triple checked and the trade still went against you.
Well, let me tell you something. That’s not a loss. It’s a business expense. It’s something you’re required to pay for trading in the financial markets.
So then, what would be considered an actual loss?
I’ll tell you.
A real loss is when you trade using a hunch or someone else’s tips or advice. If you do anything but follow your own predefined rules of engagement, you’re a loser in the financial markets.
Plain and simple.
A business owner’s job is to commit to learn and evolve all the time. Examine the things that worked and also those who didn’t and therefore need avoidance.
You should constantly be taking the time to read, exercise, eat well and care for yourself in the background, and ultimately have a balanced lifestyle. Your life needs structure just as much as your Forex trading. After all, they both go hand in hand with one another so, if one slips, so shall the other.
Your life-cycle as a Forex trader shouldn’t be aiming for the holy grail system, it shouldn’t be looking for someone to follow or gain tips from, it shouldn’t be trying to profit from guesswork and the hoping-for-the-best methodology. Your life-cycle as a Forex trader should be taking the bull by the horns, studying, reading, practicing and getting a checklist in place that you can follow down to a T!
And if you need any help along the way, that’s what we are here for.