When setting out on the forex trading journey, many people see it as a quick way out of financial trouble and, in so thinking, they approach the foreign exchange market with the wrong mind-set. The adverts and sales pages of different forex courses and indicator sellers are not helping matters either. They keep painting the foreign exchange market as the fastest way to living a life of luxury. It is only a matter of time before new traders learn the harsh truth of why it is not advisable to focus purely on money when getting into the forex market.
How to take your mind away from money and focus on trading
- Avoid trading forex for the sole purpose of buying properties or quitting your job
Almost every new trader falls into this trap. As soon as he or she lays his hand on a strategy that has been lauded as the next best thing, the mind begins to wander towards properties to buy, places to go on holiday, the expected date to quit his or her job, etc., while forgetting that not even a single trade has been placed using the strategy!
Fantasising about what you will do with your profits before you are successful is backward thinking. It’s like going to apply for a driver’s licence when you don’t even know how to drive and don’t have enough money to buy a car. It is important to have goals and dreams but you must stay grounded and focused.
The only way you can live your fantasy through foreign exchange market trading is by focusing on becoming a better trader and spending time working out a profitable strategy that you can stick to for the rest of your trading years.
- Ensure you have the passion to trade the forex market
If you are only in the forex market because you want to hit the jackpot, you have a better chance of success at the game tables in Vegas. To be successful in this industry, you must have a strong interest of what is going on around the world, economics-wise. You should equally have the mind-set to accept the challenges that come with trying to be a professional trader.
When there is a genuine passion for trading you will find yourself putting in the shifts required to become a better trader. Most newbie traders are obsessed with looking for trading strategies instead of putting their heads down to understand tools and research approaches that will help them towards profitability.
- Only trade with a strategy you are comfortable with
Most traders are more concerned with making money off forex market than becoming a good forex trader, so they will keep using all kinds of trading strategies as long as the strategy has been ‘proven’ to make money by the seller. Most of these strategies will confuse the living daylights out of them, and some of them will require you to sit in front of the computer screen 24 hours every trading day!
Forget about systems that will make you rich and, instead, focus on strategies that will make you an all-round professional trader; strategies that will provide you with a steady upward trend in your financial account.
After developing the strategy, stick to it and don’t dash back to Google, or whatever search engine you use, looking for a new strategy. The truth is that even the strategy used by specialists at Goldman Sachs and other big trading houses still lose on a regular basis. They are specialists because their winning trades outweigh their losing trade, which is what every trading system must aim to achieve.
If you take these tips to heart and head your trading mind-set will definitely change and, with time, the money will flow naturally.