How Elite Athletes’ Mindsets Translate To Forex Trading Success
Elite athletes can be perfect role models to look up to for learning about the psychology of winning in any profession. Read More
- Set Your Goals and Prepare Well
The first thing that an athlete does before they start training and practising for a match is setting some measurable and time-bound goals that are also attainable. A new player needs to spend more time preparing for the game and assess their own strength and potential to put their best foot forward. Similarly, a novice trader should also take their time to study the market and define their trading goals. The goals should be realistic and you will have to indulge in systematic learning.
When you are setting your trading goals, you can break the bigger goals and turn them into smaller goals as it simplifies the process of trading. With clearly defined goals, devising a trading plan will be easier as you can fully align it with your goals and profit targets. For deciding the profit target, you can use a currency calculator which applies real-time conversion rates for finding the value of one currency in a currency of your choice. By converting the amount, you can set the profit target easily.
- Discipline and Consistency
Two key traits that you will always find in a successful sports player are discipline and consistency. The top players may not be the best ones from the beginning but they work hard while following a disciplined approach. Becoming successful in forex trading also requires discipline and determination. Just like how an athlete will not be winning all the matches that they play, a trader cannot win all the trades that they enter. Still, success can be achieved by becoming consistent over time.
This is what athletes do as they always bounce back and return to the field after a setback. Traders should also learn to embrace the losses instead of blaming the market. You need to identify the mistakes that lead to the loss and correct them to get better results in future. Quitting is never an option and successful athletes will always tell you the power of perseverance. You can take breaks to develop your skills but you should not give up on your goals no matter what.
- Resilience
In sports, athletes compete against each other but are still focused on improving themselves to gain an edge and get ahead of others. Getting intimidated by your rival will only make you a weak player. In the forex market, you are not competing with others but you will still be overwhelmed by the market volatility and should not panic when the market becomes unfavourable all of a sudden. You need to become resilient to the frequent fluctuations and unexpected events.
This resilience comes from experience and expertise. As a forex trader, you should be ready to deal with the risk and manage it by adapting to the market situation as and when needed. Because the forex market is ever-changing, you should be flexible enough to modify your strategy to suit the situation better and such an approach is important to become a successful trader in the long run.
- Emotional Control
We often talk about the sportsmanship of players and being a good sport. Athletes don’t hold grudges against their competitors for the result of a game and they accept the rival’s success with humility. They will also be experiencing a lot of emotions like sadness, anger and frustration when they lose the game. But they can brush it off and move on by controlling their emotions like a true professional. Athletes have to respect the rules and being a trader, you should set some personal trading rules that stop you from making poor decisions in the heat of the moment.
Traders should do the same when they encounter losses and consider it as a learning opportunity. Revenge trading or emotional trading needs to be avoided at all costs and you should always make logical decisions. You should use tools like trading calculators for making calculated moves without any manual errors. You should also learn about trading psychology and prioritise risk management to avoid common trading pitfalls like overtrading.
Final Words
In the end, traders and athletes have many things in common but are also very different. In the case of sports, athletes can depend on coaches to teach and motivate them.
But when you become a forex trader, you are on your own to make all the important decisions. You don’t need a mentor to develop your trading skills. You can test your strategies and refine your skills through demo trading. You will find a lot of self-taught traders who accomplished their goals and you can also do it by embracing a winning mindset and being patient.
