Lesson #1: Be Strategic With Forex And Begin With The End In Mind
When I decided to start trading I had all these dreams. Dreams of the life I could have. The freedom I could enjoy. The money I could play with. What I could give back to others.
My dreams became more precise and I could really see myself having that life. Wow, the pleasure it made me feel.
But then I got started…
When I started trading I looked to others like we all naturally do, for guidance. I was influenced by the popular education around me and what other traders’ that I thought were successful were doing. I styled my trading based on those influences thinking that if I copied good education and good traders’, it would see me right. It impacted on the timeframes I chose, the financial products I traded, how I designed my trading plan and more.
What I later came to understand is that there are many ways to trade that can be successful. Most people fail in the implementation when other factors come into play. The design isn’t usually what’s failing them. So to follow and emulate others closely as a priority is not a key to success or the road to riches.
Other traders have made choices in the way they trade that impact the kind of life that they enjoy. It influences when they trade, how attentive they need to be to their positions, how intensive it is and a whole range of factors. Those choices may not be compatible with the life you want to enjoy.
And so it was for me in the early stages. Mastery in styles that felt abrasive and incompatible to to me did not bring me the joy I knew I could experience if I’d made other choices.
It’s about being strategic, knowing what you want and following a path that can take you there. Trading got a whole lot better and more fun once I realised this and choose my own path.
Trading can deliver the life you want and dreams can be realised. Believe it and you can have it all.
What Is Success?
Firstly, let’s take a look at what success is. Success is defined as the achievement of something desired, planned or attempted.
During your forex trading journey you’ll have success with certain small milestones. Obviously the success you’re after is the achievement of your ultimate vision.
Hitting your milestones along the way helps you know you’re on track and gives you something to pat yourself on the back for and celebrate. After all life should be full of enjoyment.
The goal is to have the small intermediate milestones heading in the direction of your ultimate forex trading vision, taking you to the place you want to be.
What’s Your Forex Trading Vision For The Future?
Any time is a good time to take stock and consider what you want out of your trading. It’s important to be very clear and know what your vision and purpose is for your trading future.
You need to create a powerful magnet that you want to pull yourself toward. A vision.
It’s called a vision because you’ve got to picture it. Put yourself in that vision and feel what it would be like to be that person, have that life and those treasures.
Seeing is believing. Believing is having. Having is living your wonderful vision for the future.
How to Create Your Forex Trading Vision
To design your forex trading vision, ask yourself these questions:
1. What part of my life is forex trading going to be?
Is trading going to be your full time endeavour or a part time supplement to your income? Perhaps it’s an occupation to keep you wealthy and healthy in retirement? Maybe you want to trade and contribute whilst caring for a family.
How forex trading plays a part in your life is personal to you. It’s important to be clear about what role it plays.
2. What kind of income do I want to get from forex trading?
Be specific. What income from your forex trading do you want one year from now, five years from now and 10 years from now?
Yes, let’s be honest. With more money we can have more fun. Richard Branson is having a lot more fun than us, right? Many divorces are motivated by financial strain so it’s obvious that it’s not fun to live without.
It’s about creating an income that will provide for you and give you the kind of life you desire.
Be specific. Write it down.
3. What do I want forex trading to contribute for me?
This is the fun part and often the more tangible objects you can get excited about. I find they can have a very motivating force because I can go out and “feel” them right now and it can engage an emotional connection. I want it right now! I gotta have it!
Here’s an example. Let’s say I’ve decided I want a Mercedes Benz. Well it’s a nice looking car for sure and I think I’d look pretty good in it! To create the vision of having the car I’m going to go out and test drive it, get in the driver’s seat and feel what it would be like to have the car. I love colours so I might pick the colour now so I can see it in my mind’s eye. A photo on my wall by my desk may be just the trick too.
This is your personal play list. Time spent on this is good time spent. It will motivate you when you need it most and when you don’t. It’s fun to create a wish list and generate enthusiasm for it.
It’s important to be very specific and clear when answering these questions. They will define your path forward and what works for you.
Be Clear to Distinguish Between A Vision and Running Away
It’s important to distinguish between a vision, what you want your future to look like, and what I call running away, what you want to get rid of from your present circumstances.
Tony Robbins is famous and right for his powerful observations about the impact pain and pleasure have on what we do. We’re far more motivated by pain, or avoiding something we don’t like and don’t want than pleasure.
Well in most things I’d say yes. But strictly speaking when you tease me with a chocolate cake I’m motivated by impending pleasure rather than the pain of the extra few pounds I may gain. That’s because the pleasure is immediate and the pain is delayed and kind of hidden, like a silent killer of health.
Sometimes when our present is not how we’d like it we look for an escape. Anything to get us out of this place we can’t stand to be. What we need to be careful about is that we move towards a life we want. Not just one that’s away from our present.
So recognise when you’re in that place where you’re running away and make sure to place your focus clearly on a vision you actually desire so you don’t find yourself running from some other place you don’t want.
Emotions are Good for Your Vision But Not For Forex Trading
It’s great to have emotions associated with your vision. Action combined with vision is a serious motivating force that can keep you driving to your goals in the face of obstacles.
So when it comes to your vision and moving towards it, yes get excited all you want.
Compare this with when you’re forex trading. When you’re making your trading decisions, following your plan, there should be no emotion in that process. Dead as a door frame and as precise as a computer processor. That’s what you’re looking for.
Channel your emotions to the right outlet, with your vision and dreams and leave them out of forex trading execution.
Your Forex Trading Vision Is Your Guide
Creating your forex trading vision is very important and can be fun time spent. Create a vision you’d climb mountains for. Define your passion.
The vision you create is your personal guide to the path that’s right for your forex trading journey. It will shape and guide each decision you make regarding:
- Which trading timeframe(s) you trade;
- What win/loss profile your systems have;
- The level of automation you use in your trading;
- The number of strategies you execute;
and so on…
Ensure the decisions you make guide you to the achievement of your trading vision, your dreams.
Don’t get stuck trading someone else’s dream. Design your vision for the future and use that to guide the decisions you make.
Dream big, act strategic and be more than you imagined! You can do it!
About the Author: I’m Rachel Hunter, TraderRach, a Forex Trader who helps traders achieve the life they love with forex. Be strategic and design your trading business for sustainable success and have fun! That’s my mission. Join many traders’ gaining the edge with “10 Powerful Lessons for Forex Trading Success” plus other goodies. Years of precious learning specially packaged up for you. My background before trading is as a Chartered Accountant and Chief Financial Officer. I know what it takes to make a trading business rock on. It would give me great pleasure to make a difference to your success.