Most people who approach the forex market as traders want to be a success in terms of making money from the endeavor. This tends to be the primary motivating factor behind people's decision to become forex traders.
It can really help motivate traders to get clear about the goals that they wish to achieve from their forex trading efforts as they approach the market.
For example, if profits are the primary objective, then it can also help a trader to visualize what they will do with those gains and how the money will improve their life.
Furthermore, trading essentially reflects a person's overall personality and trading psychology. The way that they trade and what they get out of the trading experience ultimately tends to reflect what they were looking for trading to provide in the first place.
Traders Can Benefit From a Higher Level of Self Confidence
One thing that many successful traders seem to have in common is a strong sense of self confidence that cannot be readily shaken even if they make a few losing trades.
Furthermore, having a high degree of confidence in their abilities to adapt to new situations allows them to be more flexible as traders, which can be a very useful trait when dealing in the often changing forex market.
Traders with a higher degree of self confidence also tend to be more adventurous since they are willing to make mistakes so that they can learn from them and turn the initial loss into future profits.
Such traders can not only often discover new ways to make money from the market, but they are willing to take the risks necessary to do so.
On the other hand, having low self esteem and a lack of confidence in your abilities as a forex trader can impede successful risk taking. A low degree of confidence can ultimately lead a trader to affirm this mindset by losing money.
Higher Confidence Levels Often Mean Higher Profitability
A trader's confident and disciplined mindset is perhaps the most significant determinant of their success as traders, and accounts for as much as 80% of their success potential, according to some professional estimates.
As famous trader and Market Wizard Ed Seykota once wryly observed:
"Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money."
Accordingly, it can really pay to keep your confidence level up when trading and to keep your goals firmly focused on increasing your net profitability while managing your risk appropriately and improving your lifestyle at the same time.
Avoid Taking Losses Personally
No matter how good a trader you are, the fact remains that sometimes your forex trades will win and sometimes they will lose.
As a result, it can really help a trader to avoid taking their trading losses personally or reacting emotionally to them, since doing so can be very tiring and hence counterproductive to their trading success and enjoyment over the long run.
After all, losing money when trading forex is not a personal insult, you were just wrong on the market. Losses happen to every trader - even the most successful ones - so the trick is to keep your trading losses smaller than the profits you make on your winning trades.
Basically, the key to successful forex trading is not to avoid taking losses, but instead to keep to and refine your trading plan while at the same time maintaining the confidence necessary to step back into the market to make another trade.