Welcome to the get-rich-quick scam, Forex trading! I don’t know how or where you learned about Forex trading but I strongly believe you have ever loaded on a google ad “How I made my first $1M in one month?” I can’t say this is a lie, people have systems of generating cash-flow.
In 2019, I embarked on my journey to make my first $1M in one year and then retire relaxing on the beach. Guess what, it’s the second quarter of 2020 and I am still learning and growing. This article is not a gimmick that needs you to start Forex trading but explains lessons that apply in any career of your choice;
1. Have a plan and follow it through
Ever since childhood, we are taught to have a defined plan on how to achieve our goals and dreams. In Forex trading, every trader must define his/her trading strategy and follow through it. Having an end goal in life is good but there’s a need to redefine your means to an end. At the start, my only end goal was to make money and then spend time on the beach. Lack of a plan (trading strategy) cost me dearly. In this quarantine, I took off time to work on my trading plan and journal all my trades. According to 15 invaluable laws of growth, you need to identify your why, how, what, and when.
2. Have a mastermind
We all know; “nobody has ever made it in life alone.” In forex, you are advised to have a team of other traders with whom you can communicate. This is intended to help a trader to overcome stress factors because those hard times will always come. According to Napoleon Hill (Think and Grow Rich), create a mastermind; – a group of professionals, mentors, or trusted friends that you can rely on. In the end, no building is built by the one-man army.
3. You aren’t perfect
While trading the markets, you will learn to market signals; the perfect time to make an entry or exit a trade, perfect setup, and perfect indicator. However, you will learn that it is a game of probabilities but not guesswork. 90% of the traders wait for the perfect setup to make a trade and it never comes, unlike the professional traders who make their judgments based on a risk-reward ratio. In short, the game of trading is risky, living is risky, and loving is risky. Be aware that making mistakes (losses) is part of the game. You need to harness your mistakes and learn from them because, in the end, you have nothing to lose (Steve Jobs).
4. Be tenacious
Hey, Our education system teaches us instant gratification; you can read a day before the test and still pass highly. However, in life, it is the reverse whereby you are given the test and then learn the lesson(s) later on. The process of trading is a journey that requires persistence. Will you back out when you make your first 10 losses? The 10,000th-hour rule by Malcolm Gladwell also applies in this area. Willpower never lasts but with tenacity, you will keep walking when tough times come your way.
”Focus on trading, the money will come later.“
5. Soothe your emotions
This is the most important that got me by surprise. I couldn’t imagine Forex trading is based psychology- the science of mental life. How can a money market based on trading currencies be concerned with personal beliefs and self-talk? The truth is that human beings hate rejection. It causes self-doubt and a lack of self-worth.
In the movie CREED, actor Johnson Creed lost the first match with …… it was a knockout and he wakes up in the hospital the next day. Luckily enough, he got a better coach who helped him turn things around. When all trades hit stop loss, do you think you have bad luck? It’s important to understand how you react to situations. DON’T MOVE WITH THE CROWDS, follow your intuition.
“Humans are creatures of emotions, not logic .” —Brian Tracy
Greed is the enemy of successful trading. You become excited when in profit and nervous when in losses. Learning how to soothe your emotions gives you the anatomy over your life. Personal growth is a journey and for anyone to achieve their goals (Wealth, health, successful career, family), growth should be the ultimate objective. You can learn these lessons in whatever career path you take.
Bonus tip; Always start small and think big. Heard of people who lost their money in one night? Lack of proper money management can also cost dearly. As a beginner, you are advised to use a lot of 0.01 or not more than 0.03. But if you are greedy for overnight success, you will be frustrated and a negative mindset will have it’s way to your head.
“You can’t change your destination overnight but you can change your direction overnight- Jim Rohn”
If you are interested in learning more about Forex trading, check out this site to get started.