Regardless of whether you’ve been trading for years or you’re eager to learn, forex trading and the work that goes into it can provide some valuable life lessons for us all. Join us as we look at the various things you can gain from your journey into learning to trade forex – from finding ways to resist temptation to pulling yourself back up when the proverbial chips are down.
How to be disciplined
Learning how to trade forex requires time and energy, especially if you’re starting out with little-to-no experience of the market. You’ll need to be committed to studying, ensuring you’re up-to-date with ongoing changes in the market and know how to make any changes work for you. You’ll also need to be prepared to assess successes and failures, gleaning as much information as possible from each trade to help you avoid any future mistakes and losses. If you’re holding down a full time job while you learn to trade, this will require self-discipline and ideally a rigid schedule and trading journal. Both of these things will allow you to track and measure performance so that you grow in experience as a trader.
How to practice self-awareness
Attitude plays a big part in the successes and failures of any forex trader, as it’s all too easy to become emotionally invested in trades and make decisions that you know you wouldn’t agree with if you were feeling calmer about the situation. Whether you have too much confidence or too little, or you’re a self-confessed hot head, it’s important not to be influenced by how you feel on any given day, as this will naturally affect your behaviour. Similarly, it’s also a good idea to be mindful of the way you react to wins and losses – ensuring you don’t dwell for too long on the bad or the good.
How to “let it go”
So, in the nature of self-awareness, just how do you “let it go” when the market isn’t working in your favour? We appreciate that this is a tricky skill to master, especially when your hard earned money is on the line, but in order to have any chance at future success, you need to find a way to not get too caught up on losses. This is where having set-in-stone forex strategies is crucial. This way, you’ve already decided exactly how much you can afford to lose, and when will be the time to get out of the game – you just have to stick to the rules you’ve enforced. Which leads us onto…
How to resist temptation
If you’re the sort of person who enjoys a life of excess, you should really be asking yourself if forex trading is for you. When the market is playing ball, you could enjoy big gains, but similarly, when things aren’t going well, the losses can be substantial. Again, your strategy will be key here, as you’ll need to be able to resist the urge to mess with your lot size. There’ll be plenty of opportunity throughout your forex journey for temptation to creep in – but you need to find a way to not give into this, as it could be hugely damaging for both your mindset and your pocket.
How to stay focused
This follows on nicely from the point above. While temptation will undoubtedly cross your path, if you can stay focused on the bigger picture and your end goals, you’re much less likely to succumb to urges and make impulse decisions. The best way to do this is to have a clearly defined personal plan for what you’re looking for from forex trading. You can measure this by time or money and use your journal to record progress towards it. Outline your goals right at the start of your journey if possible, ideally in demo stages, as this will provide you with clarity about why you’re doing this from the get-go.
Can you think of any other life lessons that can be learned from forex? We’d love you to get in touch via email, phone, live chat or our social channels with your thoughts!