The Beaten Path

When’s the last time you jumped of a cliff because everybody else was doing it?

Okay, bad example.

Have you ever joined an endless line of people in the super market checkout line ready to pay, and waited 20 minutes before realizing there was another open register right beside you?

No?

How about this one…You patiently wait outside with a large crowd of people to get into the door at a movie or bar when someone dashes right in with no second thought.

The door was open the entire time!

Nobody ever approached the door to see if it was unlocked! You just assumed it was locked. You simply followed the crowd and didn’t take the initiative to check for yourself because of feeling embarrassed if you were wrong.

Your reactions, or lack of, illustrate conformity. You care too much about your “image” and what others think of you. Stepping out of your comfort zone is too much for you to handle. You think that being like the majority is safe and out of harm’s way.

Take a risk? No way, it scares the heebie-jeebies out of you.

You’re afraid to take even a small, sensible risk for fear of the negative consequences. You lack initiative.

Does this sound like you?

If so, don’t worry. The previous traits describe how a large majority of traders respond to the turbulent ups and downs of the Forex market.

So why do traders conform?

For one, your everyday-conformists always concern themselves a great deal with self-appearance. They are definitely interested in looking good. Wanting to make the right impression is something that was instilled at childhood.

Conformity is so encompassing that these people always worry about displaying the “right” impression even when it’s not needed. To save embarrassment, they might hold onto a losing trade. And they may not want to try anything original or even pioneering, given the possibility of coming off as a fool when explaining things to friends.

But what does it really matter what anyone else thinks?

If you have problems with this, look deep inside yourself for direction on what you really want to do. Never let anyone else’s thoughts or feelings decide your path.

Two, traders also conform because they fear takings risks. Behind this fear usually lies the shame of losing and being a failure. And these conformists have to be right.

How do you help yourself?

Realize that failure IS to be expected.

It happens to everyone.

Many successful business people will tell you they had more failures than successes, but that it was the lessons that they learned from their failures that played a larger role in eventually attaining success.

Winning traders learn from failure, don’t care if they look bad and aren’t afraid to take risks.

Now, there’s a difference between moving outside of the lines gradually and totally throwing caution to the wind by gambling your money away like a mad man (or woman or cow).

A winning trader takes risks, but protects herself with proper risk management. In time you’ll learn how far outside the lines you can travel comfortably and when it’s time to come back. You’ll be trading like a winner… in your own way and on your own path.

“Be neither a conformist or a rebel, for they are really the same thing. Find your own path, and stay on it.” -Paul Vixie

  • spidypips

    1. Realize the failure is to be expected
    2. Winning traders learn from failure

    ^_^

  • Bill35

    Great Article!

  • Bill35

    Great Article!

  • Spipou

    Yes, this is a great article, I would say not only about Forex, but rather about life. I like the quotation from Paul Vixie : sometimes anticonformism becomes another kind of conformism ! I remember a funny French cartoon from the seventies : “If you don’t follow the basic rules of anticonformism, you are no more than an ugly conformist.” :)

    But I would also like to ponderate what you are saying about not following the crowd. Unlike a gambling activity like, for example, horse-betting, where people jealously keep their secret tips (or which they believe to be secret !) for themselves, each trade on the Forex has a cumulative effect, so the more people are aware of a trend, the stronger it will be. So, in some way, isn’t it in some way unavoidable, in Forex, that you are following the crowd ? The good thing to it being that there are no secret tips, and people are encouraged to share their insights of the market, since everybody here has an interest to see the maximum numbers trading the same way as him/herself.

  • Spipou

    Yes, this is a great article, I would say not only about Forex, but rather about life. I like the quotation from Paul Vixie : sometimes anticonformism becomes another kind of conformism ! I remember a funny French cartoon from the seventies : “If you don’t follow the basic rules of anticonformism, you are no more than an ugly conformist.” :)

    But I would also like to ponderate what you are saying about not following the crowd. Unlike a gambling activity like, for example, horse-betting, where people jealously keep their secret tips (or which they believe to be secret !) for themselves, each trade on the Forex has a cumulative effect, so the more people are aware of a trend, the stronger it will be. So, in some way, isn’t it in some way unavoidable, in Forex, that you are following the crowd ? The good thing to it being that there are no secret tips, and people are encouraged to share their insights of the market, since everybody here has an interest to see the maximum numbers trading the same way as him/herself.