The nuances of success in foreign exchange trading
Traders tend to constantly compare themselves and their results with others, hoping to achieve other people’s performance, forgetting that reality differs from person to person.
Time available for trading, trading sessions available for trading (time zone), strategy, risk tolerance, trader profile, skills and available capital, are some of the factors that will determine the results and the performance of each operator.
There is no single true definition for success when it comes to trading. Every marketer must define what success means to oneself and define a path to get it slowly. The process of constantly improving to become a better marketer is what at The5ers we call “Shadows of Success”.
Success is a process
Traders need to position themselves as their own benchmark instead of grabbing others as a benchmark for measuring success or failure. Their goal should be to continuously perform tasks that gradually improve as traders.
Success in trading is an ongoing process, remember, so ask yourself?
- Are you a better and more informed trader than you were 2 months ago? This is an improvement.
- Have you managed to go from being a losing trader to a balancing trader?
- Have you managed to follow your system in a more disciplined way than in the past?
- Is your profit rate better than 100 trades?
- Do you have more confidence in implementing your strategy?
Every little step is considered progress, a shadow of success that is worth recognizing, which, combined with others, will eventually lead you to the successful operator you are trying to become.
How do you define your criteria and goals?
There are three steps you need to take to achieve a higher level of performance:
First, understand where you stand today: What are your stats? What are your results? What knowledge do you have? Write them down in an honest way and explain if you are satisfied with what you have written. This is now your new benchmark. From now on, you will compare your future performance with this data.
You can use the PDF template of the% ers trading plan to help build and manage your own plan, as professional forex traders do. Download it here Negotiation plan in PDF.
Second, set your business goals: Describe in detail what you want to achieve in the trade; be as specific as possible. Money tends to be the ultimate goal in defining success in trading, but in reality, consistency, discipline, confidence in trading, investment time to achieve certain results , these are all some of the other important factors you can consider. In addition, sometimes money is a byproduct of improvement in other parameters.
Third, set achievable goals: for each goal, set medium-term, achievable goals that bring you closer to your goals. Also describe what you need to practice to achieve all the goals.
How do you measure your success?
Once you have defined the specific steps to take to approach your goals, you need to measure your progress from time to time. These measures will help you tune in and tailor your actions to avoid losing track of your progress.
How often should you stop and review your progress? There is really no right or wrong answer. Depending on your trading style, you can set a time period or multiple trades to measure. For example, you may decide to stop and review your results every 50 or 100 trades, but for a position trader, it wouldn’t make sense to wait that long, so you can do it in 2 weeks or so. month.
Here is another article that will give you more approaches measuring your business performance.
What to do if your performance improved or worsened?
At each measurement point (time or trading period), compare your results and statistics with your initial or final benchmark. Be sure to acknowledge your improvements and look at what still needs to be improved.
Ask yourself: has anything improved my trade? Have I complied with my risk rules? It’s mine Risk reward ratio a little better? If so, celebrate! This is a shadow of success! Keep well what you are doing.
What about what doesn’t work? Repeat the initial process, break it down, understand what you need to change, adjust to learn how to correct it, and improve it in the next measurement step. Set small goals and steps to get closer to it.
Conclusions of nuances of success
At The5ers, we accompany hundreds of traders through their professional careers and we have learned that success in trading is much more than making money in an isolated trade. It is a personal process of constant improvement and partial success that ultimately leads a trader to a higher level of performance, where, of course, money is the ultimate reward.
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