A popular market breadth indicator, the McClellan oscillator is one of the tools that MoneyShow's To...
20 Steps to Great Trading in 2013
01/01/2013 6:00 am EST
Being successful and thinking positive—for some a way of life and for others only a dream. It does not have to be only a dream, if you change some simple and basic habits and thoughts, writes forex trader Nikos Mermigas of SpartanTraderFX.com.
Being a successful trader or businessman is not fiction or unreal, it just takes some time and personal development to see the primary results. As we are now traders, it is important for us to think positive when we trade, but is it really easy to be positive every time we trade?
It is not, if we are not used to it. The markets are testing our patience all the time and that is why it is so important to have rules, which guide us in easy, as well and most importantly, in difficult markets. If we don’t stick to our trading rules and learn to protect our account from bigger harm, then it is almost impossible to think and be positive. Remember, our reaction before, during, and after our trades and challenges play the most important part. It gets even worse when we know that our trading system is great, but we don’t have the discipline to follow our own trading rules. In this case the slogan “Forex Traders Think Positive” is easy to read but difficult to apply. Common sense right!?
As major financial market traders we all have those days when things just don’t go the way we planned. We may lose too many trades, we miss out good setups, and trading opportunities, or we don’t follow our money management rule by the book. For some traders it might even look like it is impossible to grow their trading account consistently. Like many traders, you ask yourself sometimes “Why did I even start with trading?”, or “will I be ever able to become a long-term successful trader? Is this really for me? Will I be able to sleep at night again…?”
If you’ve been asking yourself some of the above questions, it’s really time to sit down and work on your positive thinking. If you ask successful traders, you will find that all of them have one thing in common; they first made peace with themselves, became very positive thinkers, made clear decisions, and took action. So please do yourself a big favor. Be as positive as possible and practice this every day, because having a positive mindset and positive thoughts is critical in overcoming and “surviving” a “bad” period in the markets. Let me give you a simple but extremely powerful exercise to start growing into a positive thinker and trader. It is very important that you apply this “Forex Traders Think Positive Exercise” right away! Don’t schedule it for next week or next month, but prepare yourself mentally and start directly tomorrow morning.
NEXT PAGE: Getting Started |pagebreak|
I know that it is not always easy because we are all only human. It could be that you have financial troubles, pressure at work, a relationship issue, bad health, or whatever…but if you think about it; these are more powerful reasons to start with your “Forex Traders Think Positive” exercise right away. Ok then, let us begin. It may look a bit primitive at start, but believe me, you don’t want to overcomplicate things at this point. “Simple” is your friend.
Step 1. Start off the morning with a smile on your face and say it out loud: Forex Traders Think Positive! Smiling is the first step to positive thinking. A smile on your face, even if not easy sometimes, will help you to master the “Forex Traders Think Positive” exercise with a lot of fun and pleasure.
Step 2. Thank God that you have a brain, smile, and use it now. Say thanks for that wonderful new day on earth and don’t let anybody tell you different.
Step 3. Look in the mirror now and if you don’t have one, go and buy one. Write down the following sentences and read them every single day from now on.
1. I am worth being a happy and successful trader.
2. I am positive, and therefore a very charming person.
3. I will greet every man or woman that looks at me when I walk outside with a smile on my face. If they don’t smile back, it is not my problem!
4. I will surround myself with positive people and walk away from negative folks.
5. I will look up to successful people and ask directly and in a friendly manner for their advice, if I need it. If they don’t want to help, I say thank you, then I smile and ask someone else. I will never blame anybody just because he or she did not want to help me.
6. Every time something negative pops up in my head, I will immediately erase this thought and think of something I really like or love.
7. I will avoid a fight at work or at home, if possible, and try to make the people, friends, and family around me happy. If I can’t avoid a negative confrontation with someone, I will try to settle it as calmly as possible and then go back to my “Forex Traders Think Positive” exercise.
8. Sometimes there are unpleasant things I do not want to do, but if I can’t avoid them; I will try to focus on something very positive during that time.
9. Before I trade, I will make sure that I have done my homework correctly. If I see a good trading setup, I will trade with confidence and passion.
10. I will follow my trading and money management rules, update my trading journal, and follow my trading plan 100%. I think about my goals and long-term success and won’t take decisions based on greed or fear. I can be the best if I follow my plan.
NEXT PAGE: A Positive Mindset Helps |pagebreak|
11. Of course, I will only trade if I have a clear signal. The rule says: No Signal—no trade! If the markets don’t want me to trade, I do something else, and enjoy it too. Too much trading is not good for my soul.
12. I respect the markets, but I am not afraid of them.
13. Losses are part of the game, and I know it. That is why I manage my trades always according to my risk management rules.
14. I will focus on my profits and learn from my mistakes; Trading is supposed to be fun.
15. I will accept advice only from traders who trade better than me and only if it suits my trading style.
16. I am a positive, successful, charming, and passionate trader.
17. If I can help someone with good advice, I will be happy to do so if this person asks for it.
18. I won’t find an excuse to stop the “Forex Traders Think Positive” exercise.
19. I will try to do this most powerful and important exercise for at least five days without a break. Only I can actually make the decision to let the “Forex Traders Think Positive” exercise in my life and I will succeed with it.
20. Before I go to bed, I plan my next day with excitement. I will be thankful, think of something very nice, smile and fall asleep!
You must think and visualize yourself as already being a very successful trader. Imagine that your trading experience allows you now to easily notice direction changes on your trading charts. Imagine overall great trading results. Imagine the profits and the wealth that comes with successful trading. This type of mind-set will help you reinforce the reasons that led you to trading in the first place. Remember that positive thoughts are most powerful. It is not possible to get rid of all negative thoughts of course. They are part of our world too, but remember; positive thoughts are more powerful, and if you get used to changing a bad thought into a positive thought, you will be able to produce more and more positive results in future. That, again, means that you will grow as a person and as a trader. A positive change of your mindset results in a growing trading account, and probably faster than expected… A new successful trader will rise!
By Nikos Mermigas, Founder, SpartanTraderFX.com
Related Articles on TRADING
While fundamentalists delve into economic and financial data to analyze the market, technicians emp...
Being able to determine market direction is a trader’s most important skill, writes Markus He...
Markus Heitkoetter discusses reward/risk ratios and winning percentage, and why determining the dir...