Monthly Archives: April 2013

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What’s the most important personality trait in Forex trading?

A common misconception in the forex trading community is that the trader with the most knowledge wins the most money. I do agree that knowledge is absolutely necessary in the trading game, and essential to achieve success, but there is one thing that all successful traders have in common: The ability to motivate themselves.

Motivation is the single most important thing when it comes to forex trading, and when you think about it, it’s really easy to understand. Sure, knowledge is important, but in order to put in the effort and all the countless hours of reading, taking lessons and participating in seminars, what do you need? That’s right, motivation. So, it’s not always easy to motivate yourself in to doing something, especially when it is something that will take a long term commitment, and this is where the will power and self control comes in. I know we can’t all be equally good at controlling ourselves and generating that motivation, bet there are certain things you can do to help you.

First of all, you need to sort out some goals. This should be short term goals such as reading through a trading book or going through the articles on a trading portal within the next two weeks, as well as long term goals. A long term goal can be something that you want to achieve five years from now, such as making a million dollars. Always keep these goals in mind. The short term goals will help you feel that you are actually achieving something, while the long term goals are meant to further motivate you into completing your short term goals.

Be willing to exit your comfort zone. If you want to be a successful trader, you need to be willing to learn new strategies and look at things from different angles. I see far too many people who will never accept that their wrong. Even if their investments keep losing money, they just won’t accept the fact that their trading system is not the best. Instead, be willing to try new systems, and tweak your own strategies as much as possible and you will find that you are going to learn a lot.

Lastly, in order to generate the motivation that you need, you are going to have to stay positive. Forcing yourself to be positive will result in you feeling more energetic, which will help you learn new things and improve more quickly.