It’s easy to get caught up in daily defeats, isn’t it? Your forex trading strategy isn’t working. You’re losing money hand over fist even though you know your system works over the long-term and you’re following all the rules. If you aren’t careful, you could let it discourage you, allowing negative thoughts like giving up, feeling like a failure, or thinking you’ll never make it as a trader creep into your psyche.
Unfortunately, it does happen to us all, so when you are discouraged by everyday setbacks, it’s crucial to keep your eye on the big picture: you could be losing a battle here and there, but you may end up winning the war.
Many traders make the mistake of letting their feelings of worth be determined by everyday trading results. You think, “If I make profits today, and every day this week, I’m doing well. But if I end up losing most days, then I’m doing horrible!”
This kind of thinking is based on how people view compensation for a conventional 9-to-5 job. You put in your 40 hours, do a good job, and you get paid handsomely. You feel good for working diligently and productively for the week.
But when you trade forex, you will not always receive sufficient compensation for your efforts–that’s just how the game works. When you don’t reach the profit goals you set, you can feel as if you didn’t get paid enough for your efforts.
It’s going to be tough, but as a trader, you must avoid thinking in these conventional terms. An extremely productive week of trade journaling or backtesting may produce ZERO profits. When you are trying to achieve a certain level of income in a given timeframe, you are setting “performance goals” that you may not be able to achieve.
A better kind of goal to set is a “learning goal.”
You may not be able to achieve a particular performance goal during a given week; that is, you may not always be able to achieve a particular dollar amount, but you can achieve a particular learning goal.
Every day you trade, you gain valuable experience regarding how you approach the markets. You see various setups and learn how they can or can’t lead to a profitable trade. Don’t undervalue these learning experiences.
Every day, you are achieving learning goals. Your daily efforts may not directly lead to forex profits, but indirectly, they do add to your wealth of experiences. You may only win a battle here and there, but when you add up the battles you do win, over the long haul, you end up mastering the markets, and winning the war in the end.
If you merely focus on how much money you make as a trader, and use a conventional payment schedule, you’ll work your butt off but fail to get the conventionally defined “paycheck” you expect, and feel ripped off. But if you define your paycheck in unconventional terms as the amount of experience you gained, you’ll feel rewarded for making a series of trades, profitable or not, and feel you’ve accomplished something.
And regardless of how much money you actually make, you will have indeed accomplished something: You will have further honed your trading skills.
In the grand scheme of things, winning minor battles and learning from your defeats will help you win the war. You’ll master the markets and become a winning, profitable seasoned forex trader.
These are some of our favorite trading books, and BabyPips.com receives a small credit from any purchases through the Amazon links above to help support the free content and features of our site…enjoy!