Why do you actually trade forexMarjan Rijavec
Why Do You Actually Trade Forex?
Forex Trading is becoming more and more popular, but still, more and more people are failing at it. So, have you ever asked yourself why do you actually trade forex for real?
In this article/video, we are going to talk about Why it is so important to define your REASON for trading and how to define it properly.
The problem – INTERNET
The problem so many traders fail lays in the mindset of each trader. A trading strategy is very important part of it, but it is not the biggest. Forex Trading is becoming appealing to younger generations which unluckily don’t understand the importance of patience in trading and in life in general compared to older generations. The issue for that is that the new generations have grown up with the internet. That means they are used to get all the desired information by just simply typing the keyword in the google. That little nuance is heavily reflecting into a trading and life in general as saying. Patience is very, very important!
The problem of a new trader mindset is the reason why they are trading at all!?
And if a traders reason is based on a fear/hope emotion (I really need that money to escape from my job) or it is based on a fear/greed (I really need that money to buy a new Rolex watch).
I don’t want to put young people on a red spot because I also get a lot of emails from older 30 – 50 people who have the same mindset, but there is a pattern I have figured out.
2 emotional patterns
Younger people are mostly trading based on a fear/greed emotion (they want to get rich quick), while older people are trading based on a fear/hope (they want to escape from their current situation by trading) emotion. The problem of these two emotion combinations is that whenever you make a trading decision you are biased by this emotion. So all the trading decision trader make are influenced negatively by these two set of emotions which leads to losing money, blowing trading accounts and frustration which follows. But there is the solution I am going to share with you at the end. Read the whole article carefully, it is very important!
So it is not so much the age, but the REASON why trader is trading, FOR REAL!
Because here is the truth…
We always have 2 reasons why we trade…
- Why we think we trade
- Why we actually trade
And most people are trapped and stuck in a first mindset frame – Why they think they trade. It is an illusion, it comes down to self-awareness! Meaning…how honest you are with yourself.
I am not making huge % growth per year because of my conservative trading style, but I am consistently profitable trader since when I was 20 years old because I was purely honest with myself. So it is not the age or life experience but your REASON WHY and of course high self-awareness.
And it is easier to be honest with yourself when you are in a good living situation, stable. (example…when you don’t have money to pay bills it is hard to make the smart investment right? If you want to make money in trading you need to have money!)
But I started trading based on a fear/hope emotion (to escape from my previous low paying, frustrating jobs), but after a one year, I have realized that my WHY was wrong!
So if you want to succeed in trading, you have to really define what is your WHY!
Let me help you!
There is only ONE WHY which is correct, sorry to say that and I also doubted it at first, but the right WHY is going like that….
- “I trade because I am already doing well in my life (I have money, I have good savings and stable family life) and I want to expand my life/business opportunities by trading forex
- I understand that trading is like any other business and it takes time to see the results. It is a field I am approaching as a student, learner and I am curious how markets work.
- And I understand that money from trading is just the result of well-developed mindset in my head.
- Forex Trading will make my retirement very smooth and relaxing and I am looking forward to starting becoming a profitable forex trader!
Can you see the difference?
My blog posts and videos are not very hyped and are not emphasizing quick gratification, but I am showing you the required psychology, attitude and mindset to win.
Simple as that!
So the homework I recommend you do is to
- identify what is your current REASON (is it right or wrong? Be honest!) and if it is not right, then…
- write THE real REASON why you should actually trade! So your WHY!!!
This exercise might be very painful for a majority of people but if you are really serious about trading you should be very grateful for this blog post, homework and to yourself for being honest with yourself. You can learn more about trading here
What is your why?
Let me know down in a comment!