THE THREE DIFFERENT TYPES OF FOREX TRADERS
I often get asked by people who want to decide if they must take my course(s) what my student’s success rate is. Now – that is not a very fair question – as you will hopefully see later. Why? Because success depends mostly on the character of the trader more than anything else – and not so much on my training or the system I teach. In the course we teach that of the four critical factors required to become a successful trader, by far the most critical is psychology/emotions. Now unfortunately I do not have much control over that in my traders. You can teach the same system to two different traders – one becomes successful and the other one fails.
There are THREE different types of traders:
- “Rainbow Chasers”
These are the ones who want to become rich quickly and with as little effort as possible. As soon as they discover Forex trading takes a lot of effort and time they just drop that idea and look for another “get rich quickly” scheme. I also call them the “hit and run” squad. Now here – then gone forever! For them, Forex trading is too much hard work. Another professional trader summed it up as follows:
“I have noticed a pattern among people around the world, regardless of country, race, or culture; they become what I call rainbow chasers. Every few months they come up with a get-rich-quick plan, but these endeavours are doomed to fail, and then comes the inevitable blaming. Very seldom do those people accept responsibility for their outcome and look inside
themselves to discover why they have failed. They go from one business opportunity to another, never achieving their end result, and are clearly locked into self-destructive habits. They repeat their bad habits, continue to chase rainbows, and fail at just about everything they do.”
2. “The Seekers”
These are the ones who are always looking for something better. A system with a higher win rate, different indicators, more profit per trade, fewer losses, … whatever! They are the ones who keep on searching for the “Holy Grail” AND NEVER FIND IT! They never settle down with one system and put in the effort to become an expert in it. Putting in months and months of work with the same system to learn the intricacies of how to become a successful Forex trader. You see it is your experience, trading style and approach that has more influence on your success than the actual system – no matter how good it is. Here is a quote from another professional trader and mentor:
“Successful Forex traders know the main part of their trading business is the development of their trading skills, not continually looking for the ‘Holy Grail’. When you have a set of trading rules that suit you and you are happy with what you have, you need only improve your skills to implement them, this will take much of the stress and anxiety out of trading and it will become enjoyable. That’s right, trading can become enjoyable once you have faith in your rules and your method.
Once you have a strategy that works for you don’t keep messing around with it, try to remain very consistent and subject yourself to the trading opportunities it identifies. I have read in so many articles out there on the web that you should keep searching for a different method or system to improve your trading, and I respond to that by saying, ‘This is complete rubbish’ … rather, I strongly suggest trying to stick with what you have and see it through, you need to give things a chance to work and prove themselves.”
3. “The Professionals“.
They are similar to doctors, lawyers, engineers, etc. who have put in the effort and money to reach their goals and now they enjoy the fruits of their labour. They accepted that for a part-time trader, it could sometimes take years of practice and experience to become a truly successful Forex trader. They ground at the stone and never gave up – even when it looked as if they would never become successful. As in my course notes: “They knew the pot of gold was there, and if they dig hard and long enough they will eventually find it and enjoy the rewards. And the rewards are immense! A lifestyle others can only dream about! In the process, they grew as people and they built stronger characters.
“… it is learning how to overcome the battle that takes place in your mind. Believe it or not, our daily destructive habits hold us back from achieving what is rightfully ours in this life. Learning to become a successful currency trader is a dream highly sought after by countless people around the world. I am here to tell you that it is a worthy and attainable dream.“
So people – hang in there! Remember the 5 psychological stages you have to go through. Those who persist WILL become successful and achieve their dreams of a life of freedom from all constraints where they can spend time on the things that count!
Let me end with well a known story – but so meaningful and beautiful that I love to repeat it!
“One evening, a very wise, old Indian chief was speaking with his grandson
about life, telling him about the internal battle that goes on inside all people.
He said, “My son, inside all of us there exists a constant battle between
two wolves. One wolf is very evil. It forces you to deal with anger, envy,
jealousy, sorrow, regret, greed, arrogance, self-pity, guilt, resentment,
inferiority, lies, false pride, superiority, and a self-centred, destructive ego.
The other wolf is good. It helps you to experience joy, peace, love,
hope, serenity, humility, kindness, benevolence, empathy, generosity, truth,
compassion, faith, self-respect, and to develop a giving, constructive ego.”
The grandson thought about it for a minute and then asked his grandfather,
“Which wolf wins?”
The wise, old Indian chief replied, “My son, the one you feed.”
So do not feed the wolf of doubt, despondency, impatience, ill-discipline, fear, greed, etc. but feed the wolf of positive thinking, commitment, perseverance, hope, faith, etc. and that wolf will win!