What Experienced Traders Know (Part 3)

(This is Part 3 of a post series. Read Part 1 here)

 

Many people begin Forex trading with the hope of making enough money to quit their day jobs. Understandably then, their focus in trading is centered around making as much profits as they can.

On the surface, this seems like a completely redundant observation. After all, who doesn’t trade for the money? The ultimate intention of every trader is a larger trading account. That much is clear.

However, there’s a subtle difference in the focus and intention of experienced traders compared to the amateurs.

When trading, amateur traders tend to focus on their intended result: making lots of money. Their thoughts are guided by that intention and consequently, their actions follow.

And since the only way to make lots of money is to take many trades (and win), amateur traders tend to trade as often as they can.

Experienced traders, on the other hand, operate from a different perspective. They know that intentions aren’t enough to get the results they want. And so, unlike the amateurs, they focus on something else entirely.

#3 Experienced Traders Don’t Focus On Money

To experienced traders, focusing on the intended result (i.e. money) is counter-productive. They know that attention is a precious resource, and so spend it only on the thoughts and actions that move them closer to their goal.

They know that thinking about getting rich will not make them so. Rather, it is the process of getting rich, that will.

Thus, experienced traders focus on the process of making good decisions. Every time they take a trade, they think “is this the best decision I can make right now?” instead of “I hope this makes me money.”

Somewhere along their trading journey, they’ve learned to love the feeling of making the right decision more than the feeling of making a profit. This is important because one can make the right decision and still lose money.

Amateur traders on the other hand, continue chasing profits without properly considering the risks. They think the trading process comprises simply of finding the right system and applying it without discretion… and so they miss out on the most important part of trading: learning to make good decisions.

By |2019-01-26T11:01:07+00:00January 26th, 2019|General|0 Comments

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