Trading the Forex markets takes a very strict set of disciplines in order to be successful. These disciplines can be learned over time, as they need to be if you plan on trading over the long haul. These lessons that Forex offers can be implemented in your day to day life and make you a better person overall. Here is a list of some of the things I learned in Forex.
Patience is a virtue. Trading the markets is a patient person’s game. Patience is so important when dealing with people, learning new things, and virtually anything that life throws your way. You will have that stick-to-it-ive-ness that gets things done. You will not be quick to quit. You will be able to live your life without stressing over the small things. You won’t find you get upset or angry as often if you have learned patience. Patience will make your life go a lot smoother.
Never assume anything. Just because you think the markets are going to do something, waiting for the signal is important to your financial survival. Assuming that the market will do this or that will make your account suffer. Assuming anything in life will never do well for you. Just because you think it’s going to be a way doesn’t mean it will. Never assume anything, wait for the full story before you act.
Greed is a killer. Hanging on to a winning trade too long because you want to get more out of it will usually end up badly. You will hurt yourself and in life you can hurt others as well. Greed is an attribute nobody is attracted to and it isolates you from your friends. In the end, that “need it now” attitude will be your downfall.
Cut your losses short. When you’re wrong you’re wrong, so what, it’s not a problem in trading or in life. Not admitting you’re wrong or making excuses for being wrong is where the problem lies. Are you the kind of person that stands tall and admits to their mistakes and learns from them, or are you the person that whines, complains and blames everyone else for your mistakes. We know a few of those people, they aren’t very nice to be around.
Let your profits run. When you are on a roll, why not keep riding it? There is a difference between being greedy and taking what’s coming to you. You got into the trade and as it delivers you should be there to take it. You can receive and be honourable at the same time. Once the flow is coming to you, you don’t need to step on anyone to receive it. You have set yourself up to succeed, don’t be afraid of reaping the rewards.
Discipline, Discipline, Discipline. This is what gets you everything you want. Your discipline allows you to achieve incredible things. Those who do not have discipline fall short on almost everything they attempt. You can use the umbrella of discipline to encompass everything else, for without discipline, nothing else will be possible. As you continue trading the Forex markets you will find you are able to develop these traits. You may have many of these already and that give you the edge when you begin. If you do not have these attributes, you will learn to develop them, the Forex markets will see to that. Best regards Russ