Common accepted knowledge leads most forex traders to hyper focus on trading strategy. I’m here to tell you right now that hyper focusing on strategy alone is also what keeps traders losing. How much do you think strategy matters if you over leverage every single trade setup? How much do you think strategy matters if you break discipline every other day and don’t follow your plan? How much do you think strategy matters if you cut every successful trade short because you can’t emotionally handle letting a trade run? Get the point?? The simple truth is strategy represents only a small portion in the equation of success. If trading strategy only represents a small portion of the success equation then what makes up the majority of it? This article is going to break down 5 tips or ‘keys’ to turning around your trading today!
1.) Stop Blaming Other People
The number one way you can insure you will never be successful in trading (or in anything else) is by blaming others for your failures. I’m here to tell you right now you are in your current situation because of the choices you made. No one but you is responsible for your current results. “Yeah but Sterling there are so many scam educators out there…they got the best of me!” Are you kidding me? How many EA’s are you going to have to buy before you realize its a scam? How many BS indicators are you going to try before you realize its a scam? Most people are looking for one thing, an easy way out. They would rather buy 100 strategies, EA’s, and indicators from people telling them forex is easy than invest the time into a real education that might take a few months. You must start applying the old saying that if it sounds to good to be true it probably is. In forex if it sounds to good to be true it ALWAYS is. You cannot cheat hard work…effort is a price all successful traders must pay.
Solution – First and foremost you have to accept responsibility for your current situation. If you can’t do that then there is really no point in moving forward. Next you need to avoid the multitude of forex scams. Here are two very simple steps to insure you don’t get scammed moving forward.
1.) Has this educator A.) traded live in front of traders or B.) produced a profitable track record? Ask yourself, if someone is profitable don’t you think they would want do one of those two things to prove what they do works? The reason both Chad and I traded live in front of members for three years straight is so that we could not only say that what we do works, but more importantly we proved it live for years and hundreds of trades. If an educator hasn’t in the past or won’t do one of those two things then you know immediately they are a scam. If you still buy what they are selling you deserve to have your money taken, simple as that.
2.) Look at the reviews! Forex Peace Army has one of the largest selection of hand verified reviews in the fx market. Again, if you buy a product and don’t look at the review you deserve to lose your money.
2.) Destination “No Where”
One question….do you have a detailed, written out trade plan? This is a yes or no question, you either do or you don’t. If you find yourself saying “well…” then let me stop you right there and say, YOU DON’T! What is the first thing you do before you go on a road trip? You get directions! You have a path, a plan! It literally baffles my mind at the amount of traders who trade day in day out without a clearly detailed trade plan. If your trading without a plan and your losing money, you should stop wondering why. Without repeatable rules, consistent successful trading is simply not possible.
Solution – Make a commitment to yourself right now that you will not place another trade until you have a written out detailed trade plan. Next you need to do some serious self analysis. This is where things get real. This is where ego and pride simply cannot exist. So what is the fix?
1.) Write down everything you trade with. Every strategy, indicator, forex robot, ect. Next to each item write “profitable” or “losing”. There are only two answers. Like I said before if you start to answer this with “well…” then the answer is NO it is not profitable. The hardest thing your ever going to have to do is admit that you might have just wasted the last 2, 3, 5 years or more of your life. You might look down at that piece of paper and see “losing” next to every item you wrote down. I should have started by saying, don’t write out this list if your working in a tall building….I don’t want anybody jumping:) If you have items that are working and profitable then simply remove all the rest and hyper focus on how to make what is working better. If you have nothing that is working then move to step 2.
2.) Go back to steps 1 & 2 under “Stop Blaming Other People”. Use those two fool proof steps to find a strategy that is proven with great reviews. The reviews are important! There are many profitable traders out there that trade a strategy that simply cannot be taught. You can’t teach gut feel. The reviews will show how well this strategy is positively or negatively effecting those that are learning it. Let me save you a few steps and direct you to a proven trading strategy with tons of positive reviews.
3.) All Successful People Do This…
Regardless of profession, anyone who is in the top 5% of their field has clear, well defined, written out goals. If you want to be in the 5% of forex traders who are consistently profitable you must have written out goals. Its not good enough to say you want to be profitable. If you don’t know exactly what you want and the small goals/steps you must achieve to get them, then your chance of success is almost non existent. One of the most powerful tools we have is conscious direction of thought. Without a clearly defined chief aim or goal, it is impossible to direct that power.
Solution – Why do you want to be successful trading forex? Many people would say the money but isn’t the real goal the lifestyle the money can create? With that in mind do you have a definite vision of what you life is going to be like when you are trading successfully? These three steps will help put you on the right path.
1.) Write down what your perfect average day would be like. I’m not talking about going on an exotic vacation or some one off thing you might do once a year. The key is to envision an average day once your a profitable trader. This exercise only works if your as detailed as possible. Start with the time you get up, how you feel, what you eat, what you wear, where do you live, ect. Write up the entire day all the way until you go to bed. Most of you won’t do this exercise and quite frankly its a shame. If your going to achieve something you have to first envision it. If you can’t literally feel yourself there, then you are very unlikely to ever achieve that goal. Read the success story of ANY person who built dynasty wealth or achieved something great and guess what happened before they found success? How long do you think Henry Ford envisioned an affordable automobile before he made his dream a reality. How long do you think Thomas Edison envisioned creating light with electricity before he made it happen. This list goes on an on. The key is they all have one thing in common, a clear vision of exactly what life will be like after the goal has been reached. There is a pattern for success but its up to you to start following it…start with this step and be as detailed as possible. Hint….this should be a few pages long.
2.) Know your exact goals you expect to achieve from the forex market (this goal is about $$$). Napoleon Hill said that “a goal is a dream with a deadline”. It fine to dream but you need a deadline. Again detail is key! Exactly how much do you want to make per month? Exactly when do you want to achieve this goal? These two questions have one thing in common, that is the word exactly. If you don’t know exactly what you want then how can you expect to achieve it?
3.) Make sure goal one and two are written out by hand. Do not type your goal, write them by hand! Every morning when you get up and every night right before you go to bed you should read the exact goals you have for your forex trading. When it comes to your ‘perfect average day’ that we discussed in step one, you should read that at least once per week.
4.) You Are Who You Associate With
Jim Rohn said that “you are the average of the 5 people you spend the most time with.” When it comes to trading are you on the forums or other chat groups that lack direction? Guess what, they are all losing traders. The bottom line is if you hang around losing traders you will be a losing trader. When you read about the Andrew Carnegie, Henry Ford, Thomas Edison, JP Morgan, John Rockefeller or anyone else who was a titan in their field you will quickly find out that they ALWAYS surrounded themselves with the smartest people. If you were able to sit in a room with those 5 men and brainstorm ideas everyday for a year do you think you would be better off? On the other hand what would happen if you surrounded yourself with 5 people who are content spending the best years of their life making someone else rich? I think you get the point.
Solution – You may be the person responsible for your success or failure but the people you surround yourself with can either increase or decrease your odds of success. Two steps will help you surround yourself with people more likely to help you achieve your success.
1.) Get out of the forums and any other areas where masses of losing traders gather. If you want to lose money then keep frequenting the forums….if not then get out and stay out!
2.) Find a community of successful forex traders that are striving towards the application of a strategy meets the criteria we discussed earlier, and that you believe in. If you are trading a strategy that you believe in and you have made it work then start your own group! If your doing well you owe it to all those who are still searching.
3.) Read! You may not be able to get in a room with millionaires but you can sure read what they write. If I could read only one book it would be Think And Grow Rich by Napoleon Hill. I promise you this book will change your thinking. How many hours a day do you spend watching television? How many hours do you spend listening to music in the car? Make the commitment today to better yourself! Take an hour a day and read! If you do this for a year you will spend what amounts to over 15 days reading. Buy audio books and listen to them in the car. Success never comes without sacrifice. Start replacing things that do nothing but keep you working for the man, and start replacing them with things that are going to better equip you to meet your goals. Start now!!
UPDATE – I just finished The 10X Rule by Grant Cardone. If people applied the principals in this book consistently things would change for them massively!
5.) Make The Commitment
Earlier in this article I asked you how long you’ve been trading. The next thing I want you to think about is how many trading strategies have you tried over that time? If your still losing money do you think its because every strategy you tried is a losing strategy? The simple truth is you might already have a profitable trading strategy in your arsenal. The trouble is often not the strategy rather it is the lack of commitment. Most people are more afraid of the short term pain of effort, than the long term pain of failure. Read that last sentence 10 times until it really sinks in! Time for the solution…
Solution – Obviously you don’t want to be committing time to something that doesn’t work. The very first step before you give a single second of your time to any trading strategy is knowing its the right one, knowing it is profitable, and knowing most importantly that it can be taught. How do you do that? Again, refer to the 2 steps in the “Stop Blaming Other People” section of this article. Not only does that strategy need to be PROVEN and have quality reviews but the part most people leave out is you have to believe in it. If you don’t believe in it 110% then find something else.
1.) Once you have found the forex training or strategy you are set on using then make a commitment! If you can’t make a 6 month commitment to a proven strategy with great reviews then you shouldn’t be trading. If you think you can learn to trade forex in a week, in two weeks, then you shouldn’t be trading. Gold is where gold always has been….at the end of a shovel and a ton of hard work. Is it any wonder why the most precious metal on earth is the ALWAYS buried below layers of worthless rock and dirt? Do you think it might be the universe’s way of telling you that the most valuable things in this world are always the hardest to reach? If gold sat on top of the dirt do you think it would be valuable, NO! The effort required to achieve something is what determines its value. A stick of gum holds little value because its easy to obtain. A Ferrari on the other hand holds great value because its difficult to obtain. Again, make the commitment TO YOURSELF that once you find the proven trading strategy your going to use, that you will work at it 110% to make it work. If you can’t do that then forex isn’t your passion, and in that case its best to save yourself the time, effort, and money and find out what is.
Bringing It All Together
Its been said that if you want to know how tall a building will be simply look at how deep they dig the foundation. Greatness in any aspect of life always stems from a solid foundation. You want to be like Chinese Bamboo tree. Unlike most trees the Chinese Bamboo tree doesn’t grow steadily each year. For the first 4 years in fact it doesn’t grow at all, or so it seems. Then on the fifth year it grow 80-90 feet in 6 weeks. How is that possible. While most people see nothing happening for the first 4 years, the bamboo is actually growing a massive root system or foundation. Nature knows you cannot support a 80-90 foot tree without an equally massive root stock. Most forex traders jump into trading with very little and many times no foundation. The principles in this article discuss 5 extremely important keys to successful forex trading.
What’s unique about success is that it is a repeatable formula. If you spend the time to study the most successful in any industry, even though they all are reaching for different goals in different industries they all apply the same principals of success as their foundation. They all accept responsibility for their current situation, they never shift blame. They always have a well defined goals for their life & a business plan for how they plan on achieving them. They all surround themselves with the brightest people possible. And finally they are all committed to success. Many of the most successful people in their industry started with nothing, took a giant leap of faith, and put it all on the line. Learning to trade forex for a living is possible but only if you follow the road map of success. If you want to receive daily support and learn the proven trading strategy of tracking the banks then check out our forex training course and I look forward to working with you!
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