5 Mental Things You Need Before You Start Forex Trading

Job Security is an Illusion.

Many people want to be a forex trader. And I know a lot of people in my social circle who wants to be a trader. I even teach them how. Recommend them books, websites and strategy. But there seems to be people who is just damn scared to let go of their day job. Afraid to take the plunge. Afraid to be laughed at. Afraid to make something happen in their life.

They are just too contented by the way things are. Perhaps, too fucking contented… Safe, secure… “But I really want to be a millionaire trading forex”. Do you see what’s wrong there? There’s a lot of contradiction in that statement. Being a millionaire is NOT synonymous to being safe in a day job. Being a millionaire is synonymous to risking, having the balls to follow what you want in life and most importantly, its ignoring what other people may say to you. Be it “bat shit crazy for quitting a high paying job.”

Have The Balls to Follow Your Dreams

The hard working people that goes to the office everyday to work 9 hours a day. Be stuck at traffic, be soaking wet during the rainy seasons, are probably the most common. Talk to them and ask them if they want to have a business. 100% of the time they will answer something like this “I really want to have a business, but I don’t have any funds right now.” or “I want to have a business but I don’t know how or have no time”. Or whatever other reason they have. Its all wishy washy. I’ll do this after I do that then I pray to the flying spaghetti monster in the sky to let me win the lottery. Before they know it, they are 40 years old. Now, they have a different problem and a little different reason. “I’ll want to have a business but I’m not sure if I’m still young enough to learn all that.”

Hesitate and you will age. Run and you will die.

Ohh… How time flies…

Lose Your Ego

There’s nothing I enjoy more in watching other traders is their ability to talk about how confident they are in a market (stocks, bonds, commodities, forex). yet they can’t seem to accept the fact that they are wrong. And sometimes, which is more dangerous, they think they can predict where the market will go.

Forming a forum so you can exchange ideas (or persuade other traders) that your analysis is correct so you have a better confidence in your analysis. I don’t think that will do any good. Knowing first hand where your trade will go, before it even go there makes your mind closed. You are not open to the possibilities that your trade may reverse. Or it may give you a profit then reverse. The decision is based on ego that you are correct. And it will be harder for you to take a loss. And thus, you are fucked up inside. You can’t trade.

Think For Yourself

Does it matter if your friend is also LONG position on the same currency pair you are in? Does it matter if your technical trading mentor is SHORT on the EURUSD? Would you try to rationalize the idea that your LONG position on the EURUSD is wrong so you can join your mentor on the SHORT side?

This is the reason why I don’t like groups in trading. I think trading is like a boxing match. And I like it that way. You don’t need the spectator’s shout of advice. You are the one that’s getting hurt. Shouldn’t you worry about your own ass?

Have the Discipline

Of all things, discipline is probably the most important. It takes the most time to develop. And takes the most effort to practice. When lose control of yourself, you don’t even know. You sometimes don’t know that you are being greedy. Or being afraid. Self discipline makes you aware of those feeling and act accordingly. And most importantly, its the best skill to have if you want to learn a new skill. It is the trait of all successful trader out there.

Discipline is what makes the rich not use their money for parties or fancy cars. Not spend on hookers or drugs. Instead, use the money back into investing. That’s discipline. Focused on a goal. Whatever your goal is.

  • Exel Man

    This article is very informative especially for newbie in forex trading like me. Thanks

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