Success in Forex: how to understand that the goal is achieved?
As well as in any business, the basis of success in Forex is the consciousness: the trader has to study well himself, and only after that − the market.
The bottom line is this: homo sapiens is always driven by the idea of self-realization: it generates requirements and demands to study new, and the natural competition forces to get into the power play and helps to cross the borders. The profit size is just the intermediate result and an incentive for the further movement.
For the accuracy of the formulations let`s address the primary sources: see the interpretation of the word «success» in various dictionaries: dictionary.com, Merriam-webster, Collins dictionary. We will try to determinate what does the success in Forex mean in the context of this definition.
For whom this article is?
For those who …
- … are not confident in the efficiency of the actions;
- … are too confident in the actions;
- … are looking for a balance between the desires, opportunities, and ambitions.
So …
Success in Forex is the achievement of the personal perfection that has to be more important than any money for the true professional.
A small lyrical digression for the better understanding …
What is a difference?
The famous trader and Forex coach Nial Fuller (see Interview: Nial Fuller − Millionaire Forex Trader) is the convinced opponent of the fast and not profitable transactions. He likes to appeal to the screen adaptation by Walt Disney of the old fable about a turtle and a hare (look super cartoon! ) for an evident demonstration of the differences between successful traders and losers.
Traditional «success of the beginner» in the first real transactions doesn't allow it (« the hare») to assess adequately a situation and to choose the suitable speed for the actions. As a result, the «hare`s» first profit quickly evaporates, and the slow, but quiet and consecutive turtle doesn't distract from the main goal and wins a race.
Please, keep in mind: turtles (practically in an invariable look!) live on Earth since the time of the dinosaurs – just because they are able to adapt to any situation, and don't hurry anywhere.
Therefore …
Success in Forex is the ability to keep energy and the trading capital for the transactions with a high probability of the profit instead of incurring losses as a result of a casual venturous rates.
After having decided on the speed of the movement, further …
Choose the purpose correctly!
Before the first transaction, and it is better even prior to the training, each beginner has to answer honestly a simple question − why does Forex suit you personally? Believe us, all formulas of the primitive cliches from the advertising leaflets, for example, «I want a lot of money» or «I want freedom» (in sense − «I don't want to work, but I want money») as the working purposes are no effective.
The purposes have to be not rigid statements like «I want», but the real and consecutive answers to the questions «why do I need this» and «how can I do this» and not to be estimated by the figures of the profit or material benefits at all. We will talk about the purposes on Forex separately and now we determine the two main groups …
Psychological purposes
... are caused by the fact that for many people existences of money psychologically substitutes a concept of the personal liberty.
Actually, big money gives only the illusion, and the absolute freedom lays in an opportunity to manage yourself, time and decisions (see How to Become a Successful Forex Trader ).
Risks, by the way, are the same − trader has to be responsible for the mistakes.
We will never be able to change the direction wind. But in our power to set the necessary sails.
So...
Success in Forex is an ability to estimate the result of the trade not by the amount of the profit, but by the correctness of your own decisions.
Trading purposes
… have to be supported not so much with the sum of a deposit but by your personal experience and knowledge. In a money management, it is called the level of an admissible risk.
That is …
- … the beginner has to learn to set the purpose and at the same time to lose money as little as possible;
- … the trader with middle experience and an average deposit has to keep (at least!) initial balance and to earn a living;
- … the skilled player is able to afford to risk and to experiment, with the purpose to earn the large sum.
But anyway, the purposes have to be such that no losses should become a disaster for you.
Please, note, you cannot apply this rule to the amount of your earnings − the trader has to choose the correct trading strategy irrespective of the money quantity on the trading account (see why 90% of traders lose money).
Conclusion?
Success in Forex is the correct goals which can be in most cases reached by the reasonable efforts and in real time.
Now it is time to mention what can disturb the trader on Forex.
Lack of the knowledge and experience
The more developed personality comes to the financial market, the bigger result he/she achieves. The successful trader has no right to stop in development and to consider that he knows everything.
The trader has to behave as the equal member of the market, to be an analyst with the inquisitiveness of the scientist and the patience of the pupil, to be able to sort the «information garbage» and to allocate necessary for herself/himself.
With the trading experience gaining and increasing a deposit, new opportunities appear, but training never comes to an end.
Therefore …
Success in Forex is a continuous intellectual development as a way of life and base for trading decisions.
Lack of the discipline
As a rule, the trader is his own man.
But here’s the problem: there are a lot of temptations, however, there is no deadline, there is no boss, there is no control. Loss of self-checking during the «free» work is especially dangerous.
A trader always has to be in the working mode, at least because he constantly risks:
- a missed control over the open transaction causes losses;
- a missed entry point causes the half-received profit;
- haven't read news become «irrelevant»;
- haven't made the analysis turns into an unsuccessful entrance;
- a failed money management leads to losses again (see point 1).
It means that …
Success in Forex: the ability to correctly organize working hours with the advantage of the trade and without harm for health.
Psychological instability
Inadequate psychological state of the trader is the reason for the majority of losses on Forex. Greed, fear, passion, game approach to trading, the insufficient concentration of the attention and diffidence destroy even multimillion accounts (see A Day In The Life of A Professional Forex Trader ).
Success in Forex means the refusal of the personal prejudices, ability to operate emotions and stable trading without psychological failures.
It is also necessary for the trader for the stable trading to gain some recognition.
Recognition as result of activity
It seems to someone that you have earned a little?
Look at it this way: the good result shouldn’t be not only simply achieved, but also should be realized by the trader, and (it is very desirable!) should be recognized by the people around. The drop of the healthy vanity can`t hurt to anybody, and the confidence supported at least by small profit has to be fixed in your mind and push you to the further development.
Success covers a multitude of blunders. But - not for long.
Please, keep in mind: a serious indicator of the trader’s professionalism is the desire of the other traders to entrust money to him for the management.
If you were noticed by the investors, who appreciate not only your trading style, but also your personality – consider this as a new step of the success.
Success in Forex is the constant confidence of the trade decisions supported with the result on the trading account.
Correct assessment of the result
As an example of the useless expectation, the American marketing specialists like to appeal to a story of one pub where in order to attract the visitors made advertising «Free Beer Tomorrow» on a window.
Result? Nobody will ever receive a free portion.
So the success in Forex even if the smallest, is surely necessary for the trader to occur every day – psychologists call it internal motivation.
The difference between successful people and really successful people is that really successful people say no to almost everything.
Everyone will have his personal result at the end: someone earned, someone didn't lose, someone reduced losses.
You should feel satisfied:
- Even if you didn't earn, but the result of your analysis was correct.
- Even if you have missed an entry point –you saw it, so you understand the market correctly.
- You didn't earn, but based on your signal, someone received a profit.
Success in Forex is a multifactorial ultimate goal, but the main financial criteria can be considered if you have managed:
- to hold the account;
- to earn in the transaction;
- not to lose in the transaction;
- to earn from the transaction according to your calculations.
And what is the result?
The concept of the success is very personal and so it is different for everyone.
One can make 100% of a deposit in a month and stay in the illusion that it will be always the same way, and next month to lose 50%, to get a nervous breakdown and to leave the market. Another trader will steadily earn a 10% of the income a month at an average risk and to feel absolutely happy.
The secret of success in Forex depends on your purposes, experience, knowledge, work, and character. Your trading account is your business and its result depends only on you.
Try It Yourself
Trading psychology is one of the essential pillars of the Forex success, so even if you are an experienced trader, you shouldn’t dismiss a trading psychology advice.
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