Just What Makes A Successful Forex Trader?

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Just What Makes A Successful Forex Trader? - By: Donald Saunders, Posted on: 2007-09-08

If you were to split Forex traders into two groups � those who are successful and those who are not so successful � could you pick out the characteristics which differentiate one group from the other?

It is not really important what we do in life, and that includes Forex trading, but, whatever we do, one thing that will have more affect on our success than anything else will be goal setting.

It is a simple fact that the human brain is at its best when it is given a clear roadmap to follow and, in setting yourself a goal, you start building your roadmap by defining the end point of your journey. However fixing a destination is not enough and you will also need to define the route which you are going to follow to reach your destination. Let us consider an example.

Suppose that you decide you want to build a fortune as a Forex trader, who doesn't want to after all! This in itself is not however much help as any goal that you set yourself needs to be measurable, otherwise you will have no way to know whether you have reached it. So, at this point, you need to define exactly what you mean when you talk about a 'fortune'.

Let us say therefore that you set yourself a goal of making $1,000,000 in the next twelve months. Now you have a clear destination. The next problem is that, since you are probably a newcomer to the world of Forex trading, are still learning the ropes and probably have limited capital to invest at this stage, realizing $1,000,000 in the next twelve months is possibly not that realistic a goal.

As well as being measurable, any goal also has to be realistic. It does not matter what goal you set yourself in Forex trading, but it must be within your capabilities. There is little point in saying that you intend to win Wimbledon if you have never even picked up a tennis racket.

So, instead of aiming for $1,000,000 let us set a more realistic target of say $120,000. Once we have done this, we next need to split this figure up into marker posts to add to our roadmap and this can be achieved by looking at our target on a monthly as opposed to a yearly basis. This gives us a dozen $10,000 markers. Now, if we keep going along these lines we can next break our goal down further into $2,500 weekly markers.

At this stage we have something that we are able to examine against our current and recent experience and it is a quite easy matter to see whether or not this figure is possible. Is it feasible, against the background of your current experience, to make $2,500 trading foreign currencies in the next week?

Goals must be measurable and realistic, but they also have to be attainable. It is all very well to set yourself a realistic goal, but you must also have the right tools, in the right place at the right time if you are going to reach that goal. If you are presently making $750 a week then you are probably not going to convert this into $2,500 overnight so, in this instance, your goal is unattainable and you will need to go back to square one and start over again.

But, if $2,500 is attainable, then there is one additional step that you need to take before you are ready to set off on your journey. This last step is to paint a mental picture of your destination.

Although you have set yourself a target of making $120,000 in the next twelve months, the money by itself is of course not really what you are aiming for, but it is what you can do with the money that is important. So, once you have got your $120,000 what are you going to do with it? If you intend to buy yourself a new SUV then paint yourself a picture of driving off into the sunset with the roof down and then you really have got a goal.

If you wish to achieve success in Forex trading then you must set yourself a goal that is measurable, realistic and attainable and paint a picture of that goal in your mind's eye. If you do this you will be amazed at how easy it is to reach your destination.

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