Earlier lastweek I wrote a critical article titled ‘5 Things All Forex Traders Must Avoid‘. I covered some of the more prolific habits and pitfalls all struggling traders consistently fall into. Ironically these are some of the most common things I hear traders talking about when they are wondering why are they not making money in forex.
The good thing is – all of these habits can be changed. With these forex trade tips you certainly can trade profitably, and make a lot of money doing so.
In today’s article, I’m going to cover the 5 points on how to turn your forex trading around by offering the 5 solutions to what all forex traders must avoid.
#1 Focus on Opportunities
Behind each obstacle is an opportunity – to grow, to overcome, to profit. The difference between successful traders, and those not profiting is the successful individual sees an obstacle, looks for a way to remedy it, and take advantage of the situation.
If you are constantly thinking about a prior loss, how much you are down, how you don’t have time to fill out your journal, or trade your plan, then shift your focus to the opportunity available. You may just see your energy, focus and trading change.
#2 Focus on Every Aspect of the Game
Can you guess what articles are my most popular? If you guessed about price action strategies – you are correct.
Can you guess which are the least popular? If you are thinking articles on trading psychology and money management – you are two for two.
To be successful at most endeavors (trading especially), you have to do things outside the norm, because most are not successful. Most are devoting all their time looking at charts, learning about trading strategies, looking for the holy grail, the system that will solve all their problems. Yet most spend less than 5-10% of their time building up their mental capital, their conscious mind and trading mindset.
Perhaps the very reason why you are not trading profitably now, has a direct relationship to where your focus is. Food for thought.
#3 Focus on Solutions
Don’t have good money management? What is your solution? Don’t deal with the emotions of trading? What is your solution? Having a difficult time sticking to your trading plan? What is your solution?
While almost all those who are having trouble trading are focused on the problems, or things out of their control, those making money and getting better are focused on the solution.
#4 Focus on Process
When I first started training in Archery, I made an effort to focus on the process, the technique, my mindset. I knew if I got the technique right (body alignment, release, follow through, etc.), the arrow was most likely to hit the target. In some Korean schools, they will actually have you focus on the technique for months, before actually firing a single arrow. That is ‘focusing on the process’, and the Korean shooters are some of the best in the world.
Instead of focusing on hitting the target all the time and making all this money – focus on following your trading plan, on knowing its strengths and weaknesses, on your mental process.
To become successful at trading – you must focus on the process necessary to achieve your goals. Focusing on results first is both a distraction and mistake.
#5 Protect Your Mental Capital
Do you beat yourself up after a loss or mistake? If so – do you think you are protecting your mental capital? Are you focusing on all the things wrong, do you think this is building a successful trading mindset?
Confidence does not just come from successful results – it comes from the belief you can trade successfully – and this has to be built up and protected.
I hope you enjoyed these 5 solutions to what all traders must avoid, and how to turn your trading around.
Want to turn your trading around and build a successful trading mindset? To learn more forex trade tips – check out our Forex Trading Courses where we teach traders to become profitable.