Choose one of these mindsets if you aspire to become a Forex trader.
The Independent trader or the Dependent trader. How much money you have the potential of making in the markets is determined largely by the type of trader you are. Actually, it could affect what happens in the rest of your life, including how long you work for someone else, when and where you vacation, and how and where you live.
You may think I’m exaggerating, but really, those who are proactive can have a positive effect on the course their lives (and their trading) will take as opposed to those who sit back passively and let others steer the course of their lives for them.
Anything that requires nil or little effort is not likely to produce results, or will produce limited results. On the other hand, you will realize permanent results from anything that forces you to think and act on your own.
This is especially proven to be true by trading, it doesn’t matter if it’s Forex trading or a different market. Getting back to the two kinds of traders, they exhibit typical ways of thinking. Which type are you?
The Dependent trader is always on the lookout for an easy way. This is someone looking to make a quick buck, or hit the big one, but who also wants to avoid actually working to get what he or she wants, if such things even exist. Not to mention that it could and should be argued that they do not.
Dependent traders are followers, they make trading decisions based on “hot” tips, they look for automated ‘millionaire-making’ trading programs, they listen to those who supposedly have news expertise, and then blindly place ‘can’t lose’ trades (which always do seem to find a way to lose). They do all of this with no plan of their own, no forethought, and apparently little or no understanding of the actions they are taking.
It’s only natural to become frustrated with repeated failures and losses, so they do what comes naturally in those situations, which is to give up.
Dependent traders are similar to those who play the lottery — they are fully aware that the odds are against them, but they think that anyone can have a stroke of luck, so why couldn’t it be them?
It goes without saying that Dependent traders will have a low chance of financial success and maintain little control over their own lives.
The independent trader is the opposite. This trader wants power over their financial future and already knows (or will know) how the markets operate, which approaches to trading the markets are really effective, and how to make it possible to make their own trades without having to lean on others for assistance, whether it be for advice or tips or news.
An Independent trader realizes that he/she is responsible for maximizing the odds for their own success and attaining financial and life goals. They will learn from their failures and strive to accomplish more in the future, seek out others and learn from them, as well as educating themselves.
But keep in mind that at some time or other, we all exhibit traits of the Dependent trader. The difference is that the person who will become Independent may rely on a mentor or other educational source when he/she is first starting out, but as he/she becomes more knowledgeable, the Independent trader will start using what they know on their own. This is something the Dependent trader will never do.
Three easy steps to become an Independent Trader:
Step One: Devise and execute a trading plan. Figure out what BEST fits your daily schedule — day trade, trade end of the day, trade once a week — and then nail down the sources from #2 and #3 below that line up best with your scheme. You’ll probably discover that applying day trading methodologies to end of day trading will not work, and vise versa.
Step Two: Find several reputable sources of education. We will give you the names of a few, but you must select the one that you can trust and understand. Use these sources to learn as much as you can. Then figure out how you can apply it yourself.
Step Three: Try several trading methods, and learn from your experience. Your chance of succeeding is minuscule if you do not grasp the basics of trading methodologies, mainly in the application of technical or fundamental indicators.
The previous steps will require time and money. Think of them as your costs for trading education and keep in mind that it is much smarter to invest in yourself than to lose money in the market before you know it.