Just What Makes A Successful Forex Trader?

If you were to divide Forex traders into two groups – those who are successful and those who are less than successful – could you pick out the characteristics which differentiate the two groups?

It does not really matter what we do in life, and that includes foreign exchange trading, but, whatever we do, one thing that will have a bigger affect on our success than anything else will be goal setting.

It is a simple and proven fact that the human mind is at its best when it is given a roadmap to follow and, in setting a goal, you start the process of building your roadmap by defining the destination for your journey. But setting a destination is not enough and you will also need to define the route which you are going to follow to get to your destination. Let us consider an example.

Suppose that you decide you want to build a fortune as a foreign exchange trader, who doesn’t after all! This in itself is not however much help as any goal which you set needs to be measurable, otherwise you will have no way to know whether or not you have reached it. So, at this point, you need to define just what you mean when you talk about a ‘fortune’.

Let us say therefore that you decide to set a goal of making $1,000,000 in the next twelve months. You now have a clear destination. The next problem is that, since you are almost certainly a newcomer to the world of foreign exchange trading, are still learning the ropes and may have limited capital to invest at this point, making $1,000,000 in the next twelve months is probably not that realistic a goal.

As well as being measurable, any goal also has to be realistic. It is immaterial what goal you set for yourself in foreign exchange trading, but it has to be within your reach. There is no point in deciding that you intend to win Wimbledon if you have never even picked up a tennis racket.

So, instead of aiming for $1,000,000 let us think about setting a more realistic target of say $120,000. Having done this, we then need to break this figure down into marker posts which we can put onto our roadmap and this can be done by looking at our target on a monthly rather than a yearly basis. This will give us twelve $10,000 markers. Now, if we continue along these lines we can then break our goal down further into weekly markers of $2,500.

At this point we have something which we can examine against our current and recent experience and it is a reasonably simple matter to see whether or not this figure is possible. Is it feasible, in the light of your recent experience, to make $2,500 trading Forex in the next week?

Goals must be measurable and realistic, but they must also be attainable. It is one thing to set a realistic goal, but you also need to have the right tools, in the right place at the right time if you are going to reach that goal. If you are presently getting $750 a week then you are probably not going to turn this into $2,500 overnight so, in this case, your goal is not attainable and you will need to go back to the beginning and start all over again.

But, if $2,500 is feasible, then there is one additional step which needs to be taken before you are ready to set off on your journey. This final step is to paint a mental picture of your destination.

Despite the fact that you have set a goal of making $120,000 in the next twelve months, the money itself is of course not really what you are aiming for, but it is what you can do with the money which is important. So, once you have got your $120,000 what are you going to do with it? If you want to buy yourself a new sportscar then paint a picture in your mind’s eye of driving off into the sunset with the roof down and now you really have got a goal.

If you want to achieve success in foreign exchange trading then you need to set yourself a goal which is measurable, realistic and attainable and than paint a picture of your goal in your mind’s eye. If you do this you will be surprised at how easy it is to get to your destination.

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