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TRADING PSYCHOLOGY

Take Control of Your Trading

How a Shift in Mindset Can Equal a Shift in Results

Take Control, Your Trading, Trading Psychology, Shift, Results, fx trader, forex

If you’re not seeing the results that you want from your trading, you have no one to blame but yourself. Okay, maybe that’s a little harsh, but I would bet that for most traders it’s true.  Many make the decision to trade not just for the dreams of becoming wealthy, but because it offers a massive amount of control. Control over their finances, control over their time, control over their decision making and ultimately control over their future.  All of this can be achieved in the financial markets, unfortunately it rarely is. Excuses such as “I don’t have the time”, or “I never formally studied economics” are often used to justify the struggle. But the reason that so many traders struggle is because they lack control over their trading by lacking control over themselves. Taking control of your trading begins with understanding where you’re at in your trading journey.  There are four stages that a trader will go through, three of which are briefly explained below.

Unconscious Incompetence

This is the beginning stage of trading where “you don’t know what you don’t know.” Imagine a young child exploring the world with a lot of curiosity and zero fear of the potential dangers that exist.  Many traders will begin at this stage until they have the time to become more educated about the markets or learn from their own mistakes.

Conscious Incompetence

Eventually a trader will begin to realize that being successful isn’t as easy as they once thought. Buying and selling at will won’t get the job done and the quest to acquire knowledge begins. (It was at this stage when I first came across FX Trader Magazine as I was scavenging the internet for as much information as I could find).

Conscious Competence

After finding a strategy, back testing said strategy and creating a solid trading plan, the trader now feels as if they have done everything possible to put themselves in a position to succeed. However, as their live trading begins they still notice a few minor setbacks standing in their way of consistent profitability. 

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