There is a big difference between learning to trade the foreign exchange market and being a forex trader. A concept in which a lot of people struggle with, so they confuse the two.
What you need to ask yourself is, “What kind of a forex trader do you want to be?”
Because there are many different types, and they hang out all over the place online. And they will flock together with like-minded people so that their beliefs are proved to be correct.
The problem with this attitude is that if you are not doing your best, you never will. So, let’s look at some Trader Types, according to their levels of success.
1. I Just Haven’t Found My Strategy Yet, Forex Trader
I’m afraid this trader is the most common, whether or not they want to admit it. They are continually looking for the “Holy Grail”, the strategy that works for them with their current behaviours and beliefs.
They fail to realise that they are the reason each strategy they try doesn’t work, not the system itself.
90% of these people will give up, blaming everything external to themselves. Or they will just eventually run out of money and move into affiliate marketing and suffer in silence.
The only hope for this type of trader is to recognise the importance of Trading Psychology and Invest in themselves.
2. Suffer in silence Forex Trader
You don’t spot this rare breed very often for obvious reasons. They keep their pain to themselves. They lurk in the back of forex forums trying to copy successful traders.
Trying to gain free knowledge and advice, the problem with this attitude is that you don’t know where the advice is coming from. It varies a great deal from site to site and forex trader to forex trader.
They will remain here unless they gain the assertiveness to Invest in themselves.
3. Don’t do it, Forex Trader
This trader has peaked at the same level as the job they quit. They’ll be just making enough money to survive. They usually work the same or more hours than they did with their previous employment.
And sometimes, they will make themselves feel better by trying “to save” other people from their pain.
By trying to talk people out of ever starting a Forex journey, claiming all teaching academies are scams. And successful forex traders are liars.
These scared traders will associate only with other traders who struggle, so their belief in Forex Market and Forex Trading is continually reinforced.
4. I’m doing OK Forex Trader
These guys earn a wage, spending slightly less time forex trading as they worked at their previous 9-5 jobs. They actually make slightly more, so they are better off, and they work from home, so they spend more time with the family.
These guys and girls do promote forex trading to a certain degree but explain that it takes a specific type of person to be able to make money as they do.
These forex traders will drink to calm their nerves, won’t take proper vacations and are never really out of the market.
5. Trade from the beach Forex Trader
Beach traders have their strategy nailed and use trading as a vehicle to travel.
For these forex traders, it was never really about the money. It was always about the freedom trading the forex market brings to your life.
More now than ever before. As trading on your phone with basic wifi has never been easier.
They might even teach a few other trades on their journey around the world. These traders are often found in forums and can be extremely helpful in parting good encouragement and knowledge.
They make money as they need it.
6. The Successful Trader
The successful forex trader tends to make his money in under 10 hrs a week. They may have spent years building up their trading muscles.
But their trading muscles are now well-formed, and their trading has become a habit. They have a system and a journal that they use and review religiously.
The Subconscious has taken over the majority of the work. Because they spent hours creating their own strategy, trading plan, routines, and checklists.
These guys and gals have also been known to manage trading accounts for close friends and family members.
7. The Elite Forex Trader
The Elite Forex Trader tends to go one of two ways, sometimes both. They will become Fund Managers for their own company dealing with big money, teach forex trading, or quite possibly both.
The elite trader treats trading as a business, and they trade entirely professionally. It’s not a job. To them, it’s a JOY because they love doing it.
Elite Traders have made every part of their trading a system. Their rules and plans may be complex, but their systems, however, are not.
These professionals plan and practice for every eventuality they can think of. To never be surprised or stressed by any event. They understand the importance of their health in performing at peak state for long periods.
They’ll have fitness coaches, nutritionists, life and success coaches. And they practice yoga and mindfulness.
These are not just Elite Forex Traders.
They are Elite people.
What Type of Forex Trader Do You Want To Be?
So before anyone can teach you how to BE a forex trader. You need to decide what kind of forex trader you want to be.
Suppose you are still under the marketing spell that trading consistently profitable is easy. In that case, you are in for a challenging and bumpy round.
The journey to becoming even an I’m doing OK forex trader is not an easy one. It will be an emotional rollercoaster. You may have success for days, weeks and possibly even months.
You will start to think you are the king and have managed where so many others have failed. And then, in less than six weeks, you will have given back most or all of your profits. Some will have lost most or all of their account.
You will lose your confidence in not only your strategy but yourself. Your consistency will wain as your ill-discipline gets more often.
Because you have focused on the success and not on the systems.
You have to have systems in place to keep yourself in check.
As a forex trader, you are the most essential part of your trading machine, even if you branch into automation or get your account managed for you.
It will be you who decides your fate.
If you haven’t done the work on yourself, you will be fortunate to reach the I’m OK trader status.
There are numbers bandied about that. I have no idea if they are correct or not. I’m not entirely sure how you would check. But let’s presume they are.
These numbers state that 95% of retail traders lose money. That means only 5% of us retail traders make money trading the forex market.
Let us also consider the fact that an “I’m doing OK trader” is, in particular, making money, so they are, in fact, in this 5%.
That means that 95% of retail traders fall into the first two categories because all the rest have just given up.
So, How Do I Learn To Be a Forex Trader?
With a lot of hard work, commitment, perseverance and a lot of determination and self-examination. Let’s not beat about the bush here. I know of no one who has become a consistently profitable forex trader without some sort of coach mentor and education of some sort.
To BE an Elite Trader, you must first become an Elite Trader. That means you must think, act and do as an Elite Trader.
Which is not as easy as it sounds, even if you know an Elite Trader.
Because to trade like them, you also need to understand them. You will need to know their significant Beliefs for each action they undertake in regards to forex trading.
Added to this, you will need to understand and replicate their vital mental states at each relevant stage of their trading process. And just for kicks, you will also need to know their chief Mental Strategies and when to use them.
Make no mistake, you will need a mentor. You will need a coach if you genuinely want to be successful in this game.
And this is where the problem lies. This is why so many coaches fail to teach their students how to be a trader and thus how to make consistent profits in the market.
Very few Elite or Successful Traders have had a good look at what they do internally.
They don’t know their beliefs, probably never realised that they have specific mental strategies. Or specific mental states for each step of their personalised trading process.
How can they teach or coach something that they don’t know that they are doing?
So that begs the question when people look for role models, coaches, educational companies and trading gurus.
Why do they look for the best or most successful trader?
When indeed they should be looking for the most successful coach?
And that is why we are different at Wealth-4-All. I have dissected Elite Traders. So that I now understand what it is that they do internally, and I have replicated it myself.
I have modelled their behaviour, beliefs, mental strategies and mental states. And I have put it all in one place.
Do-It-Yourself Trading Program
If you are struggling to successfully extract consistent payments from the markets, then I do suggest that you take a look at my “Do It Yourself” Trading Course.
In this course I will personally coach you the necessary technical and psychological skills needed to be a successful Prop Forex Trader and create the life of your dreams, whatever they might be.
Have a great day!
It is my belief that trading is 99% Psychological. And it is by understanding and improving your psychology that you can be a successful trader.
Success is a formula that everyone can and should learn.