In my Trading Career, to practice Forex Trading online in the right way, I had to change my Trader Mindset. Then, I have set new and different targets, so as a different lifestyle. This changing involved several things. First of all, I had to change How to see and How to experience the money. This means that my “relation” with money was controversial, before to become a Successful Trader.
Success in Trading happens by Hard Work, Sacrifice and Mind Education.
Profiting.Me Students repeat and repeat the right things until the exhaustion. This makes them able to get a systemic comprehension and practice around the Price Action. This changes their usual Trading Practice, but the right Trader Mindset is something that take more sacrifices.
Controversial use of the Money
The hypocrisy of Luxury and Social Status
I was an IT Consultant and I was able to sell myself in the best way. Then, Banks and Telecommunications Companies paid me very well for my daily job. In addiction, my experience and attitude made me able to have the lowest effort getting the best reward.
This situation gave me a lot of money so that I was a young man with large resources. Then, I started to spend money in different ways. For example, living in the center of the city, going to work by taxi every day, the best restaurants. I still remember my loved Gucci suit, my Prada Glasses, my “bohemian coffee” in Brera (Milan). I was like the “master for my world”. My qualities and my ambitions made me a free man but also the worst person.
The use of the money was the hypocrisy of Luxury and Social Status. Money for Luxury, so as Money to differentiate myself from others.
Of course, this was and it is, so as it always will be a bad way to use the money. It is also a bad mindset that make lose the humility and despise the weakest persons.
No Money, No Life
Going forward, October 2007 brought the collapse of the USA Real Estate with consequences in all the Financial Markets. Business Companies stopped to pay providers because the panic, so as Banks stopped to concede credit and so on. Then, many companies failed, including some of my customers. The result was that in December 2007 I closed my business company and I started to have serious financial problems.
At this stage, the use of the money was just spend everything to pay providers, salaries and more taxes possible. As you can imagine, money available never was enough.
Of course, this was the worst life experience and the end of my resources. Including the abandon of the apartment in the center of the city and many other things.
Without money there is nothing: no food, no friends, no family. You could not be agree with this, but it is the truth.
This gives fear and terror and these life experiences set the mind in a wrong way.
Fears and Trading
The years after 2007 were difficult with taxes problems and with people who used to despise me in many ways. I had worries and month by month I didn’t find a way to get out of darkness.
So, after several failures, I started to consider trading like a resource, but without success. Every Trade I took used to give me fear to lose money, so as fear to lose the profit earned. The trade in running with 30 pips in profit used to scary me. I had not the right mindset for the Forex trading online. I was just trying, but in the same time I had no skill and I was afraid to lose money.
The fear affected the use of the money and the resources were very low.
In addiction, there was the awareness that a changing was necessary. Particularly, the mind needed more discipline for money and emotional control.
Undisciplined and Overwhelmed Mindset
Having money, spend and squander is not the right way to use the resources available. In the same way, have fear to take advantages from a correct use of the money shows a compromised mindset.
A Controversial use of the money, by different life experiences, shows the lack of experience and the lack of discipline.
But this is not the only thing. It shows also that there are wrong targets and a specific fault in the mindset.
Money can induce people to act incorrectly, with false modesty and disrespectfully. In the same way, the lack of money makes people scared to use the low resources for the right things.
People find themselves in a deadlock when they have no more money, but in reality their mind stalls for fear.
The stress, the terror, the worries, the awareness of the problems make people no more able to think properly. Then, they don’t realize anymore what is the next step to do.
The worries overwhelm the mind and they concretely affect everybody badly.
The right Mindset for Forex Trading Online
To learn Forex online it is enough to study with dedication for the long-term, repeating and repeating. This means that it is necessary a consistent hard work and determination to have clear how the Price Action works. Then repeat, repeat and still repeat.
But this doesn’t guarantee the success. A trader can have the best training in the world and don’t be profitable consistently and constantly. In the most of the cases the reason is that the trader needs to acquire the right mindset.
Every independent trader is generally a Retail Trader who practices Forex Trading Online. To be a Successful Trader the right Mindset is a must and It defines the Trader Lifestyle.
A few important things define the Most Powerful Mindset for Forex Trading Online:
- Awareness about Money.
The Discipline in Forex Trading Online
Traders can have different trading approaches, but to trade Forex for living is fundamental to define a set of rules. These rules brand a process in the trading practice. Every trader collects the right rules by Mentors and Direct Experience.
Apply the rules in the right way, so as constantly, is concretely difficult, if a trader has not enough experience. So, it is necessary a training and this is something that take a lot of time.
It is usual to see a Successful Trader explains around how he has lost money considerably for a long-term. Every trader makes the necessary mistakes that train his mind to respect a set of the successful rules.
A Disciplined Trader is an Educated Mind to persist in the repetitive application of the rules.
Trading is a simple job that everybody can do.
What makes lose money is just the difficulty to repeat continually what really worked for them.
This happens because people avoid the dedication, so as they avoid the commitments for the success.
Trading Experiences are Resources
The practice and the mistakes are a benevolent necessity to learn to trade Forex. Practicing for the long-term, repeating and repeating, every trader become able to recognize the peculiarities of the Price Action. In this way, the Disciplined Trader becomes able to increase the rate of successful trades. But particularly, going forward with dedication, the trader increases the rate of successful trades that pay a large reward.
It is not necessary to open a big number of trades to grow the balance account. Instead, what is really important is to take trades with the lowest risk possible and with a remarkable reward.
The consistent growing of the account depends from that small percentage of the trades, closed with large rewards. So, the most of the trades closed will not pay so much.
With a set of Successful rules to apply repeatedly, every trader can grow his account.
But the clear comprehension of the Price Action take a lot of time and a lot of practice. The Experience comes from the Perseverance.
The easiest peculiarities of the Price Action give successful trades. Then, their occurrences give easy opportunities to earn money.
With the practice and the dedication for the long-term the Price Action tends to become less abstruse to our eyes.
So, with time also the most difficult peculiarities of the Price Action becomes clear for the trading practice. Then, with the increasing of the experience more trading opportunities, in the current market, become familiar.
A clear comprehension of the Price Action makes the Trader Successful.
For everybody who practices Forex Trading online, but also funds, listed stocks and so on, the experiences are resources.
The Experience is the result of repetition and perseverance that imprint in the mind Profitable Trading Processes.
Awareness about Money
As well as Gordon Gekko says, “Money never sleeps”. We can give different interpretation to this definition. One is that there are continue opportunities to get profit in any marketplace, in any moment of the working week. The practice of Forex Trading Online makes earn money in any moment, because the marketplace is really liquid. The liquidity makes the Forex Market very easy to trade.
The relation that we develop with the money is what set the largest part of our Trading Mindset.
The Awareness of Money for a Trader Mindset is not only specific for the trading practice.
Awareness about Money for Forex Trading Online
The Awareness about the Money for Trading Practice is the awareness about Risk on Investment and Return on Investment.
The Trading Mindset for the Forex Trading online is the result of a Training Process. It is what makes the trader able to manage the emotions around the investment.
Invest $100 is really different from invest $100.000 for the same Price Change Percentage of reward. It is necessary to educate the mind to reach the $100.000 of investment. This is a necessary training and it gives the confidence to invest increasing the amount of money progressively.
This means that it is important to educate the mind to manage the stress around a bigger size of money. This is possible focusing the trading on targets, so as on sizing.
What I do is to define Sizing Plan and Growth Plan basing the steps on a Non-linear Series Function. In this way I define intermediary targets and different sizes for the reaching of each target in the Growth Plan.
The use of a Sizing Plan and Growth Plan has a multiple utility:
- Define a Sustainable Growth for the Account Balance.
- Have an appropriate Margin Risk to keep the Equity in Growth.
- Define Risk Limits and Freedom Degrees for the Trade Size.
Awareness about Money for Trader Lifestyle
A Trader with experience lives the life in a different way. He has discipline and experience, so as a better way to manage trades. I always repeat to my Profiting.Me Students:
Measure the Success by your Trades.
Measure the success by the trades closed and not flaunting the wealth.
However, I would differentiate the Money Awareness for Trader Lifestyle:
- Do you want money for Luxury or you want money for Retirement?
Instagram and Snapchat show very young traders, with thousands of followers, with the mind focused on Luxury Cars. This is a mindset typical of young people. But this is also the mindset of who wants to look rich desiring not relevant things.
This mindset is also what scammers use to steal money from ingenuous, young and inexperienced people. It seems very easy to take money from people with this specific mindset.
From the other side, there is who plans to save money. For this category of traders the wealth is visible but in a limited way.
They don’t need to look rich, they are rich.
This mindset is surely one of the best. They earn money properly saving a significant part of what they earn.
What is important is to divide the resources in budgets and priorities.
They can divide the money in different Groups. For example:
- Education for Children.
- Personal Growth and Personal Education.
- Angel Investing and Private Equity.
- Liability and Return of Debts.
- Personal Branding.
- Real Estate.
Any mindset to manage the money can seem good until there are resources available. But if things would not go as expected, who prefers to look rich will experience difficulties. Or at least, he would stop to look rich, so as stop to pay the loan for the Luxury Car.
It is fundamental to acquire the right Mindset and it distinguishes properly a Successful Trader from any other. The right mindset for Forex Trading online is the result of a Training process that requires time and commitment.
Over any Forex Strategy there is the Price Action and the Awareness about the Money.
A disciplined trader with a clear comprehension of the Price Action and Awareness about Money is Unstoppable.
He never suffers because the money and he manages his resources properly.
There is a clear difference between the mindset of employee and an entrepreneur, so as a self-employed and a trader. This difference is concretely in their mindset.
Listening the speeches of a hired laborer, we understand his vision of life. He desires many things, but he does nothing to change his life condition. This doesn’t mean that he doesn’t act to improve properly. But he acts staying around some specific limits that are for him like safeguards. The salary seems like protection and tranquility, for the most of the cases.
Another common difference is in How people consider the bills. An employee measures his solvency thinking about the money that he will get in the next month or full year. Instead, a self-employed generally measures his solvency thinking about the resource he has already available.
In the same way, even if the trader is earning less than a normal salary, he keeps a positive mood. He also wants to stay away from negative minds and from who gives advice about money without earn. Instead, many employees use to blame others for their daily efforts and unsatisfactory.
A Great Trader doesn’t earn only money. He builds his whole life around trading and this shows his Success by mindset and lifestyle.
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