What Is it That Makes A Successful Forex Trader?

If you were to divide Forex traders into two groups � those who are successful and those who are less than successful � would it be possible to pick out the characteristics which differentiate one group from the other?

It is not really important what we do in life, which includes Forex trading, but, whatever we do, one thing that will have a greater affect on our success than anything else will be setting goals.

It is a simple and proven fact that the human mind is at its best when it is given a roadmap to follow and, when setting a goal, you begin the process of building your roadmap by clearly defining the end point of your journey. However fixing a destination is not enough and you will also need to define the route which you are going to follow to get to your destination. Here is an example.

Imagine you make up your mind to build a fortune as a Forex trader, and who doesn’t after all! This is not however much help as any goal which you set needs to be measurable, otherwise you will have no way to know whether you have reached it. So, at this point, you need to be clear about precisely what you mean when you talk about a ‘fortune’.

Let us assume therefore you decide to set a goal of making $1,000,000 in the next year. Now you have a clear destination. The next problem however is that, as you are almost certainly a newcomer to the world of Forex trading, are still coming to grips with the ropes and may have only limited capital to invest at this point, realizing $1,000,000 in the next year is perhaps an unrealistic goal.

As well as being measurable, any goal also has to be realistic. It does not matter what goal you set yourself in Forex trading, but it has to be within your reach. There is no point in saying that you are going to win Wimbledon if you have never even picked up a tennis racket.

So, rather than aiming for $1,000,000 let us set a far more realistic target of say $120,000. Once we have done this, we next need to split this figure up into marker posts to add to our roadmap and this can be achieved by viewing our target on a monthly instead of a yearly basis. This gives us a dozen $10,000 markers. Now, if we continue along these lines we can next break our goal down further into $2,500 weekly markers.

Now we have something which we can examine against our current and recent experience and it is a fairly easy matter to determine whether or not this figure is reachable. Is it possible, in the light of your current experience, to make $2,500 trading Forex in the coming week?

Your goals must be measurable and realistic, but they also have to be attainable. It is all very well to set a realistic goal, but you also need to have the right tools, in the right place at the right time if you are going to reach that goal. If you are currently making $750 a week then you probably won’t convert this into $2,500 overnight so, in this case, your goal is unattainable and you will need to go back to square one and start over again.

But, if $2,500 is feasible, then there is one additional step which you need to take before you are ready to set off on your journey. That final step is to paint a mental picture of your destination.

Although you have set a target of making $120,000 in the next year, the money itself is not really what you are aiming for, but it is what you can spend that money on which is important. So, once you have got your $120,000 what are you going to do with it? If you are planning to purchase yourself a new SUV then paint a picture of driving into the sunset with the roof down and now you really have got a goal.

If you want to achieve success in Forex trading then you need to set yourself a goal which is measurable, realistic and attainable and paint a picture of your goal in your mind’s eye. If you do this you will be amazed at how simple a matter it is to get to your destination.