What Goes Into Making A Successful Forex Trader?
The many thousands of Forex traders can be split into two groups - those who are successful and who make a considerable sum of money and those who just scrape by. In this article we look at exactly what it is that sets these two groups apart.
If you were to split foreign currency traders into two groups – the successful and the not so successful – could you identify those characteristics which separate one group from the other?
It is not really important what we do in life, and that includes Forex trading, however, no matter what we do, one thing that will have more affect on our success than anything else will be setting goals.
It is a simple and proven fact that the human brain is at its best when it is given a roadmap to follow and, in setting yourself a goal, you start building your roadmap by defining the destination for your journey. However setting a destination is not enough and you will also need to define the route which you are going to follow to get to your destination. Let us consider an example.
Suppose that you make up your mind to build a fortune as a Forex trader, who doesn't want to after all! This is not however very helpful as any goal that you set yourself needs to be measurable, otherwise you have no way of knowing whether or not you have reached it. So, at this stage, you need to define precisely what you mean when you talk about a 'fortune'.
Let us say therefore that you decide to set yourself a goal of making $1,000,000 in the next twelve months. Now you have a clear destination. The next problem however is that, since you are almost certainly new to the world of Forex trading, are still coming to grips with the ropes and may have only limited capital to invest at this point, realizing $1,000,000 in the next twelve months is probably an unrealistic goal.
As well as being measurable, goals also have to be realistic. It does not matter what goal you set yourself in Forex trading, but it must be within your capabilities. There is no point in saying that you intend to win Wimbledon if you have never even swung a tennis racket.
So, instead of aiming for $1,000,000 let us look at setting a far more realistic target of say $120,000. Once we have done this, we then need to split this figure up into marker posts to put onto our roadmap and we can do this by viewing our target on a monthly rather than a yearly basis. This will give us twelve $10,000 markers. Now, if we continue along these lines we can then break our goal down further into weekly markers of $2,500.
At this point we have something that we can view against our current experience and it is a fairly easy matter to see whether or not this figure is attainable. Is it feasible, in the light of your recent experience, to make $2,500 trading foreign currencies in the coming week?
Your goals must be measurable and realistic, but they also have to be attainable. It is one thing to set yourself a realistic goal, but you must also have the right tools, in the right place at the right time if you are going to reach that goal. If you are presently making $750 a week then you are probably not going to convert this into $2,500 overnight so, in this instance, your goal is not attainable and you will need to go back to the beginning and start all over again.
But, if $2,500 is feasible, then there is just one further step which you need to take before you are ready to head off on your journey. That final step is to paint a mental picture of your destination.
Despite the fact that you have set yourself a goal of making $120,000 in the next twelve months, the money itself is not really what you are aiming for, but it is what you can do with the money that is important. So, once you have got your $120,000 what are you going to do with it? If you want to buy yourself a new sportscar then paint yourself a picture in your mind's eye of driving off into the sunset with the roof down and then you really have got a goal.
If you wish to be successful in Forex trading then you have to set yourself a goal that is measurable, realistic and attainable and than paint a picture of that goal in your mind's eye. If you do this you will be amazed at just how easy a matter it is to get to your destination.
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