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Just What Makes A Successful Forex Trader?

By: Don Saunders If you were to split foreign exchange traders into two groups � those who are successful and those who are not so successful � could you pick out those characteristics which differentiate the two groups?

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

It is a simple and proven fact that the human brain works best when it is given a roadmap to follow and, by setting yourself a goal, you begin the process of building your roadmap by clearly defining the end point of your journey. However setting a destination is not sufficient and you will also need to define the route which you are going to follow to reach your destination. Let us consider an example.

Imagine you make up your mind to build a fortune as a Forex trader, and who doesn't want to after all! This in itself is not however very helpful as any goal that you set yourself needs to be measurable, otherwise you will have no way to know whether or not you have reached it. So, at this stage, you need to be clear about precisely what you mean by a 'fortune'.

Let us assume therefore you decide to set yourself a goal of making $1,000,000 in the next year. You now have a clear destination. The next problem is that, since you are probably new to the world of Forex trading, are still learning the ropes and probably have only limited capital to invest at this point, realizing $1,000,000 in the next year is probably an unrealistic goal.

In addition to being measurable, any goal also has to be realistic. It is immaterial what goal you set for yourself in Forex trading, but it must be within your reach. There is no point in saying that you intend to win Wimbledon if you have never even held a tennis racket.

So, instead of aiming for $1,000,000 let us think about setting a far more realistic target of say $120,000. Having done this, we then need to split this figure up into marker posts which we can put onto our roadmap and we can do this by looking at our target on a monthly as opposed to an annual basis. This will give us a dozen $10,000 markers. Now, if we continue along these lines we can then break our goal down further into weekly markers of $2,500.

At this stage we have got something that we can examine against our current experience and it is a reasonably easy matter to determine whether or not this figure is reachable. Is it feasible, in the light of your recent 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 one thing to set yourself a realistic goal, but you must also have the right tools, in the right place at the right time to reach that goal. If you are presently getting $750 a week then you probably won't convert this into $2,500 overnight so, in this instance, your goal is not attainable and you will need to go back to the beginning and start over again.

However, if $2,500 is attainable, then there is one additional step that needs to be taken before you are ready to head off on your journey. Your last step is to paint a picture in your mind's eye of your destination.

Despite the fact that you have set yourself a target of making $120,000 in the next year, the money itself is of course not really what you are aiming for, but it is what you can spend that money on that is important. So, having made your $120,000 what are you going to do with it? If you want to buy yourself a new SUV then paint yourself a picture in your mind's eye of driving off into the sunset with the roof down and then you will truly have a goal.

If you wish to achieve success in Forex trading then you must set yourself a goal that is measurable, realistic and attainable and paint a picture of that goal in your mind's eye. Do this and you will be amazed at how easy it is to reach your destination.

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