This is the second section on developing the mindset of a successful forex trader.
Successful traders believe that they are the only ones who can influence their trading outcomes. In contrast, the unsuccessful trader believes in luck, or blames the broker or the market when things go wrong.
The successful trader does not base his or her self worth on whether their account is up or down for the day. When something doesn’t go to plan, the successful trader uses it as a learning opportunity, but does not necessarily abandon their system since he or she is realistic about losses.
Most of all, the successful trader realises that there is no-one else to blame, and that the individual trader must accept all credit and responsibility. There is sometimes a negative view to this, but accepting responsibility also means being able to take the credit for success. When a trader has a proven profitable system, on balance, this means that success will be the norm.
The FX market is inherently unpredictable, and is uncontrollable. It is impossible to make the market do what you want – it is far too big for an individual to control. This means that the trader has to be able to manage significant uncertainty.
Successful traders have an internal locus of control. This means that they believe that they do have control over the outcomes in their lives. Unsuccessful traders believe that external factors change the outcomes, and they have little or no control over the outcomes. Both winning and losing traders face the same market circumstances, but with a different attitude.
Successful traders realise that they can control whether or not they take signals from their system, the currencies that they will trade, the size of their trades and whether or not to enter a market. These variables are what gives the successful trader control in the market. The market itself is not controllable or predictable.
Since unsuccessful traders don’t have a trading system, they don’t have any basis to enter or not enter a particular trade, and no defined exit point. This leaves the activity of the market as the key variable in determining the outcome. This reinforces the belief that external factors influence the outcome.