While a positive mental attitude is important, it is not enough.
Those of us who are in forex currency trading also need to be able to do the following:
- Use a trading method that has an edge BUT only when all the pieces come together to create a solid setup with a high probability of success.
- Stay focused on attaining their goals and constantly thinking about winning.
Unless you have an approach that works over a period of time and stay focused and disciplined in sticking with it, all the positive mental attitude exercises will not help you.
To begin, you must go back to the most elementary question, ‘What type of a forex trader do I want to become?‘
- A scalper, intraday, or a swing trader?
- Based on the above, what time frames will I trade?
- Will I use traditional lagging indicators or a forward looking approach?
- Do I look at other markets to gain clues for future FX price movements?
- Is my initial trading plan robust and does it hold up over a large sample size of trades?
- Does my trading approach only look at the market one dimensionally?
- Do I know how to properly assess risk and manage position size accordingly?
- Can I sit in front of my screen and fight the temptation to trade every zig and zag or “signal” from the forums?
If you are unsure about any of the answers from above, a positive mental attitude will not benefit you much.
Becoming a proficient trader is a journey that never ends, you simply move on to different stages of understanding and effectiveness.