The Optimal Forex Trader Mindset That Might Make You Profitable
“Football is football and talent is talent. But the mindset of your team makes all the difference.” – Robert Griffin III
With the Rio Olympics getting completed more than a week ago, one may look at athletes with aspiration.
“Wow… I wish I could be that good too!”
It just seems unattainable.
The interesting part, however, is that there exist similarities between competing for an Olympic medal and competing as a profitable Forex trader.
It comes down to developing an optimal Forex trader mindset.
The truth is, like in Forex trading (where not all traders make it as full-time traders), making the Olympics doesn't guarantee a sure win of medals.
Even among athletes, we've seen some of them fall…really?
One example is Mackenzie Brown, a 2016 Olympian in the Archery Team, who despite her rank as #4 in the world, didn't win any medals by the end of the Rio games.
Following a very deceiving match, here's what you could find on her Facebook page:
“My 2nd match may not have gone the way I wanted it to, but I'm stronger for it, and definitely determined to be back on the Olympic stage.”
That will be the basis of this article.
Easy Way To Win The Olympics?
Before going further, I want to make sure we're on the same page…
Are you aware of any trick or training program that can ensure an athlete will win the Olympics at 100%?
Despite all the great trainers out there, I'm not aware of any sure way to win every time (and I'll guess it's the same for you).
The reason is simple: there is no sure way to win the Olympics or become the best in a sport. Your performance varies based on your mental & physical state. And in the end, the only way to win is to become a winning person.
It is the same with any kind of trading.
Now, the reason I brought up Mackenzie's Facebook post it because it represents a key aspect present in all winning athletes and all consistent Forex traders.A successful Forex trader must develop a successful mindset prior to seeing improvements. Click To Tweet
Optimal Forex Trader Mindset For Continuous Improvement
The reason why some people achieve great things and some don't come down to one primary thing in my opinion.
After all, I don't believe anyone is born with a special skill.
Now, you might argue that some get it easier than others in life, but I'll be the first to point out highly disadvantaged people who went from nothing to succeed.
It's simple. They had a different way of seeing things. A way that made it almost impossible for them to ultimately fail at what they do.
That way of thinking can be easily summarized by a concept developed by one of the world’s leading researchers in the field of motivation Carol Dweck PhD.: Growth vs. Fixed Mindset.
In short, a Growth Mindset is a mindset through which you do not see your capabilities as fixed. You evolve with experiences, setbacks, and lessons. In other words, the fact that you aren't talented/intelligent/knowledgeable enough today doesn't mean it will always be the case. You believe you can grow, change, and evolve over time.
A Fixed Mindset is just the opposite. Fixed Mindset people feel they'll always be the way they are. If they fail today, they are failures…
Can you guess Mackenzie's type of mindset?
Exactly. She saw her deceiving match as an opportunity for growth.
The Key To A Growth Mindset In Forex Trading
Now that you understand the main difference between a growth and a fixed mindset, I want to share a few keys that will allow using your Growth Mindset in Forex trading.
First things first: if you aren't getting the results you want in trading, it means you haven't developed yourself into a profitable trader yet. Accept it and see how to move forward.
It's great to know how growth-oriented you are, but you still need to identify what to work on a create a plan of action to improve. Below are the things that will bring you in the optimal Forex trader mindset.
1. Every week, I take out my journal and reflect on how I performed.
At this point, I still make it an appointment with myself (like the most important meeting of my life) on Fridays afternoon to take notes on what I did well and not so well during the past trading week. This isn't where I look at every single trade or my trading plan. I simply reflect on my execution and mindset.
If I see anything I need to work on, I'll write it down. If I have any uncertainty, I'll also pin point why.
The key here, of course, is to take that information and turn it into action. For instance, if you don't feel confident about the way you trade, don't just say “oh I'm not confident…”. Instead, take the action to backtest a little more.
2. Every month, I have a trading implementation goal.
That is a concept that made a huge difference.
I may identify 1,000 things in my weekly reviews (not literally), but deep down I know I can only work on one thing at a time.
Each month has a sort of theme. It keeps me focused on always improving and implementing something new.
I set a goal of something to practice at the beginning of every month.
A couple of examples:
- Creating a trading playbook (more on that next week!)
- Not cutting profit when I feel like it
- Trading out loud
- Writing down in my journal before a trade
- Always taking some profit at R = 1
- Practice trading price action without confirmation
They key for me is to take something that I'm committed to achieving during the upcoming month.
I'll point out, however, that it has been challenging for me to do this during the summer as my trading weeks were often cut out with travels. (good or bad?)
Hopefully, you've got insights on the mindset successful athletes and successful traders have in common. The next part is about implementing that into an optimal Forex trader mindset and taking action.
Whatever stage of trading you're in, you can choose to adopt a certain mindset. The fact that people around you display a fixed mindset doesn't mean you have to adopt their same way of thinking. Be different and adopt an optimal Forex trader mindset!
What do you think? Do you have a Growth Mindset? What have you done to keep that mindset in hard times? Comment below or post in the Facebook group!