When it comes to forex trading, your success or failure will depend on a number of variable factors.
From your ability to utilise analytical tools and technical indicators to a strong sense of determinism that recognises the underlying nature of the forex market, even seemingly small factors can contribute to you being one of the 30% of traders who actually achieve a profit over time.
However, there are some affirmations that can help to create a successful mindset and help lay the foundations for a profitable trading career. These include:
1. I am a successful trader
While it may sound a little odd, regularly repeating this affirmation to yourself at the beginning of each trading day can help to instill a strong emotional drive and underlying sense of motivation.
Most importantly, it affirms a sense of belief and self-confidence, which enables you to focus on your individual objectives and pursue them as energetically as possible.
Similarly, repeating this type of affirmation can positively impact your mindset over time, as you begin to visualise yourself as a professional trader who engages daily with the financial markets and creates ambitious expectations.
As we’ve already touched on, simply repeating this affirmation is not enough by itself to make you a successful trader or optimise profits over an extended period of time.
However, it does help with the formation of a positive and success-oriented mindset, which is integral to every forex trader in the marketplace.
2. I respect and follow my trading plan
Similarly, every successful trader is known to adhere to a predetermined plan, strategy or trading system, as this helps to create a structure and methodology that can help you to prosper during times of increased volatility and high emotion.
The latter point is crucial, as emotive trading can be highly damaging for investors, especially those that take on increased leverage and control disproportionately large positions with their deposits.
With these points in mind, having an affirmation to respect and follow your trading plan at all times helps to ground your approach, while creating a consistent methodology that’s rules-based and driven by selected analysis.
Not only this, but respecting the need for a trading plan reaffirms the fact that forex trading is a business, rather than a hobby, game or something that can be approached without a measured or strategic mindset.
As trading plans also play a key role in identifying potential investment opportunities, the repeated reinforcement of their importance can contribute to more consistent profits over time.
Make no mistake; this remains an incredibly difficult hurdle for traders to overcome in a fast-moving marketplace, especially one where an estimated 70% of all forex traders lose money over time.
3. I embrace the principles of patience and discipline
While there are numerous values that define successful traders from those more likely to fail, patience and discipline are arguably two of the most important.
Certainly, maintaining discipline can be difficult in an incredibly volatile and unpredictable space, especially when you consider the emotional impact of winning and losing trades in real-time.
For example, earning a significant profit from a trade can create a sense of invincibility and encourage you to invest beyond your means (or at least increase leverage), whereas a string of losses may cloud your judgement or even cause you to become unnecessarily risk-averse over time.
Both represent potentially harmful emotional reactions to outcomes that are fundamental to the practice of forex trading, while they also have a long-term impact on your activity and may significantly undermine your chances of success over time.
But how do the values of patience and positivity manifest themselves in successful traders?
Well, patience effectively means letting the market come to you rather than actively chasing price, while accepting that trading is a business with long-term projections and outcomes.
It also refers to the practice of not closing out profits prematurely as a result of fear, while remaining steadfast in the face of emotional challenges and triggers also taps into your innate sense of discipline.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision. London Loves Business bears no responsibility for any gains or losses.