Exactly What Goes Into Making A Successful Forex Trader?

We see both successful and less successful foreign currency traders, but what is it which determines whether a trader is in one group or the other?

If you were to separate foreign currency traders into two groups � those who are successful and those who are less than successful � would it be possible to pick out those characteristics which separate the two groups?

It does not really matter what we do in life, which includes Forex trading, however, whatever we do, one thing that will have more affect on our success than anything else we do 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, when setting a goal, you start the process of building your roadmap by clearly defining the end point of your journey. But fixing a destination is not sufficient and you will also need to define the route which you are going to follow to get to your destination. Let's look at an example.

Suppose you decide you want to build a fortune as a Forex trader, and who doesn't want to after all! This is not however much help as any goal which you set needs to be measurable, otherwise you will have no way of knowing whether you have reached it. So, at this stage, you need to define exactly what you mean by a 'fortune'.

Let us assume therefore you decide to set a goal of making $1,000,000 in the next twelve months. You now have a clearly defined destination. The next problem is that, since you are probably new to the world of Forex trading, are still trying to learn the ropes and possibly have limited capital to invest at this stage, realizing $1,000,000 in the next twelve months is possibly an unrealistic goal.

In addition to being measurable, goals must also be realistic. It is immaterial what goal you set yourself in Forex trading, but it has to be within your reach. There is little point in deciding that you intend to win Wimbledon if you have never even swung a tennis racket.

So, instead of aiming for $1,000,000 let us think about setting a far more realistic target of say $120,000. Once we have done this, we then need to break this figure down into marker posts to add to our roadmap and this can be done by viewing our target on a monthly as opposed to an annual basis. This will give us a dozen $10,000 markers. However, if we keep going along these lines we can then break our goal down further into weekly markers of $2,500.

At this point we have something which we can examine against our current and recent experience and it is a quite simple matter to determine whether or not this figure is reachable. Is it feasible, against the background of your recent experience, to make $2,500 trading Forex in the next week?

Goals have to be measurable and realistic, but they also have to be attainable. It is one thing to set a realistic goal, but you must also have the right tools, in the right place at the right time to reach that goal. If you are presently getting $750 a week then you probably won't turn this into $2,500 overnight so, in this case, your goal is not attainable and you will need to go back to the beginning and start over again.

But, if we assume that $2,500 is feasible, then there is one further step that you need to take before you are ready to set off on your journey. That final step is to paint a picture in your mind's eye of your destination.

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

If you wish to achieve success in Forex trading then you must set yourself a goal which 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 simple a matter it is to get to your destination.

Comments? Questions? Email Here

© HowtoAdvice.com

How to Advice .com