Select one of the following mindsets if you are thinking about becoming a Forex Trader.
The Independent trader or the Dependent trader — The amount of potential gain you can obtain from the markets depends heavily on the type of trader you are. It will impact every facet of your life, including where and how well you live, where and how often you vacation, as well as whether you work for someone else.
It’s no surprise that people who act on their own to seize opportunity, unlike passive followers, can influence the outcome of their trading and their lives.
It is imperative that you realize that any undertaking needing slight effort, or none at all, will bring forth small, brief or insignificant results. Naturally, long-term results are more likely to be achieved when you do anything for yourself.
This is proven to be true by any kind of trading – Forex, stocks or other markets. Which one of the two kinds of traders with common mindsets are you?
Uninformed dependent traders generally dream of a lot of success with just a little work that should earn them substantial income even though they neither particularly understand how that might actually come about nor intend to apply themselves in any way to learning how trading does work.
Generally dependent traders are followers rather than leaders. They trade based on the latest “hot” tips, they tend to want to use automated ‘millionaire-making’ trading programs, and they follow those who claim to be news experts while blindly placing ‘can’t lose’ trades (that, of course, do lose). All of this is done without a well thought-out plan, and no real understanding of what they’re undertaking.
No doubt they will get discouraged with their losing ways and give up entirely.
Dependent traders are very much like the purchasers of lottery tickets in that they fully understand the tremendous odds against winning but know that someone always wins, so why not them?
Clearly, dependent traders, since they don’t believe they have control, don’t succeed financially.
The Independent trader is at the opposite side of the spectrum. This trader wants to control their financial future and has figured out (or will figure out) how the markets operate, which approaches to trading the markets are effective, and how to enable themselves to trade without needing the advice of a mentor or tips or news from the so-called experts.
An Independent trader knows and takes to heart that only through their own efforts can they maximize the odds of their succeeding, and attain their financial and life objectives. They will do everything to learn from other traders, continuously educate themselves, adjust after making mistakes, and reach great achievements.
We should mention, that at some time, everybody has a small amount of Dependent trader in them. The difference? Someone who is on track to becoming an Independent trader may, of course, look for a mentor or rely on some other solid education source at the start — but as their knowledge expands, the Independent trader starts to apply what they’ve learned to start trading independently.
A Dependent trader won’t ever do that.
In order to become an Independent Trader:
(1) Make and follow through with a trading plan. Decide the frequency of trading that best fits your daily schedule and then pick from #2 and #3 below the sources that align with your plan. Because they usually don’t work randomly, do not attempt to employ end of day trading techniques to day trading, or the other way around.
(2) Find two or three reputable sources to learn from. We can suggest some for you; however, the point is that you find one that you can comprehend and have faith in. Use these sources to learn all that is possible. Next, figure out how to apply it by yourself.
(3) Use several trading methods to learn and test. The chance of your succeeding is quite remote if you do not have the basic knowledge of trading techniques, chiefly in the usage of technical or fundamental indicators.
The steps just outlined depend on time and capital outlay. Nevertheless, you should look at them as the expense of your trading education — it makes more sense to invest in yourself rather than squandering your money in the market.