This is the final part of a three part lesson on gaining the mindset and thinking patterns of a successful forex trader. Previous sections detailed the importance of avoiding self sabotage and some characteristics of successful traders. This section deals with the actual changing of your way of thinking.
Changing Your Thinking
Now you know what psychological attributes are needed to successfully trade FX. How do you develop these? Generally there is no way to develop without practice. We recommend that you start trading with a practice account (available from many brokers). Take it seriously, and analyse your reactions to wins and losses. Keep a journal which details the reasons for your trades, and track how you feel about them. This introspection is necessary to grow as a person.
Write down your trading goals, and also imagine yourself as a successful trader, and write down a specific picture of how that trader analyses the market and handles and feels about successes and losses. Keep your goals where you can see and review them regularly.
Consider working with a personal coach or psychologist to increase your performance. The best sportspeople already do this, and you should follow their example.
Focus on the game rather than the dollars. As you become consistently successful, gradually increase the scale of your trading.
A Final Note
The FX markets offer an exciting opportunity for you to build substantial wealth without needing to run a conventional business, or scale the slippery corporate ladder. You need a systematic approach to trading, typically by developing your own system. There are no short cuts to success, so you will need to read widely and critically, and work on your trading psychology.
We wish you successful trading.