Friday, March 27, 2015

Mindset Secrets of the Millionaire Traders

There are many forex traders who make huge profits yet many don’t have a college education and many don’t spent all day trading – what separates them from the rest is their mindset. Trading is a combination of method and mindset and this is what this article is all about.

The key to market success is:

Sound Simple Method + Executed with Discipline = Trading success

If you can’t execute a method with discipline you really have no method in the first place but it’s much harder to do than most traders think.

If you don’t think having the correct mindset is crucial to forex trading success then think about this fact.

100 years ago 90% of traders lost and this figure still remains the same today.

Think about it – this ratio has remained the same despite all the advances in forecasting, software news sources and the internet – the ratio remains the same.

The reason for this is trading success is down mostly to mindset, human nature is constant and it will remain the same in 100 years time – lets look At getting the right mindset in more detail.

2. Work Smart Not Hard

Learning a method is straightforward and anyone can do it as the following example shows.

If you read the story of the “the turtles” ( see our other articles ) you will read how a group of people who had never traded before, learnt to do so in 14 days and went on to make millions. They did this by working smart, NOT hard and only learning what they had to - no filler or information for information sake.

In many jobs you get paid for the effort you put in. When you trade FOREX you earn your reward simply for being right.

In conclusion you dont need to work hard you need to work smart

The key to trading success is to have confidence in what you are doing and your method, this leads to discipline and currency trading success.

3. Confidence

You hear traders talk a lot about discipline being a key to success in currency trading - but you don’t hear them talk so much about confidence but it’s a vital ingredient of trading success.

To have confidence, you need to understand exactly how and why a forex trading strategy works and will continue to work. If you have confidence, you can acquire the key trait that most traders lack.

4. Discipline

Discipline is the key to forex trading success - If you don’t trade your method with discipline – you don’t have a method – PERIOD.

It’s not as easy to trade in a disciplined fashion as many traders believe as when money is on the line trading a method when it suffers a period of losses is hard mentally.

Any trader can learn to trade but not many traders get the correct mindset to succeed and this has been the case throughout trading history. Success Comes From Within

The first reason is that most traders simply cannot accept responsibility for their actions so they try and buy success - but they don’t fully understand why the method works and can’t obtain confidence and discipline and fail.

If you want to become a successful forex trader you have to accept you are totally responsible for what you do and no one else.

Build a simple robust trading system you understand, have confidence in and trade with discipline. It sounds easy, but few traders are prepared to work hard in the right areas and most won’t accept responsibility for their actions.

The result of this is losses – Success comes from within and you can do it if you want to – if you don’t you will probably fail.

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