Welcome to another blog post by AspireFX. With the potential of earning an uncapped amount of money with the skill set taught here at AspireFX, it is important to note that once your are in control of your thoughts and emotions, you are more than halfway to becoming a successful trader. The market is forever changing and we, as retail traders, need to adapt with the market. The notion of change is a trap, it challenges us to aspire to become better than who we currently are but it can also leave us chasing something that we may never reach.
When entertaining change, it forces us into self-division. We divide ourselves into qualities we like versus qualities we do not. We start to notice our strengths as well as our weaknesses and it’s human nature to embrace our good qualities only. However, in order for us to change and grow effectively as traders, we cannot neglect our weaknesses.
Suppose I manage a position poorly because I was greedy and ended up exceeding my daily loss limit on the trade simply because I thought there was more potential for profits. Then, over the next few days I become profitable again and end the week off at break even. As humans, we tend to focus on the fact that we did not lose any money for the week. Since we are only focused on the positive, the loss does not bother us and it will soon be forgotten. We move on without learning anything. The next time I’m in a similar situation where I become greedy and mismanage a trade, I will repeat the same mistake made previously because I didn’t deal with my weakness and start the process of overcoming it. The cycle continues, I become profitable again and end the week off flat but the fact of the matter is, our weaknesses will eventually catch up to us if we do not face them there and then.
It’s essential when trading, even in life, that we embrace our weaknesses because if we don’t break our bad habits, it will be detrimental to our lives and our trading accounts. Positivity is important too but do not let that drag you into denial of your weaknesses. What you learn from your mistakes could possibly give you more insight into the market, perhaps it was range bound when you thought it was trending. Alternatively, it could teach you something about yourself, perhaps how you could manage risk more effectively. Be more aware of your losses and you could open up the door to exponential growth and profits.
With the market constantly changing it’s important for us to adapt with the market. A losing trade is never a total loss if we can learn something from the situation. Embrace who you are and begin taking the first steps to becoming the trader you are capable of being. Remember to stick to your trading plan and always use the correct risk management. Hit the subscribe button to receive blog updates directly to your email.