Trading Pays You Based on the Results
As I said here last time, trading the forex market is not a regular job where you are paid for X amount of hours you spend in front of your trading desk every day. There is no fixed and guaranteed salary waiting for you at the end of the each month. As a trader you are paid based on the results, that is why you should set only process goals.
As independent trader you will be (once you master your trading process) only paid by your performance, no matter how many hours you will sit at your trading desk and watch the markets.
Most traders, as me, started with trading because of the passion for the markets, and to work for themselves. Now, when someone is totally new in the trading, and without any experiences he/she usually have only outcome goals. Not only him or her, but majority of the retail traders. Before they even learn anything, and learn on how to trade the market, they only think about how much money they can make trading forex.
Outcome goals like “I want to make $5,000 per month” or “I want to make at least 250$ per day trading”. As the time goes by, and you get some experiences you will learn those kind of goals means nothing in your trading. Those kind of the goals will not help you to improve your trading results, and to become a better trader. Goals like that will only hurt your trading progress and development. Chasing the money and trying to get-rich-quick with trading the market is bad habit you need to solve.
Instead of helping you, they will only deviate you from focusing on your process and rules which are most important and only things that matters.
When it comes to achieving your trading goals, you have to shift your perspective and thinking…
Let me give you an example…
There are probably some sports you follow on a regular basis, and you are fan of X Club.
Do you think X Club have only outcome goal like winning the national championship?
Of course not.
This goal can be used as their motivation, but they will hardly reach it without any work put it. They will probably not achieve it without focusing on their daily process first. Daily process is only thing they have in control and what makes them better. When they become better, they will probably perform better and there is a higher chance they will succeed at what they are doing.
Makes sense right?!
It is same in trading the markets… whether it is forex trading or stock trading. Principles are similar, if not the same!
You can have goals like “I want to become consistently profitable trader this year” or “I want to build 6 Month track tecord”…
All good, but in all honestly outcome goals like above should not be your main focus. Your main focus should be your daily process. Daily process like how you prepare yourself for every trading day, how do you look for trading opportunities, how do you manage your trades, how do you learn from your trades and action etc.
Process goals will help you on your way to become a good trader and lately help you to achieve any goals you set your mind to.
You need to shift your thinking around, simple as that.
Process goals as “I will follow my trading plan for the next 10 trades.” This is the right goal to have for your own trading. You have to switch your thinking off from money and outcome goals. Money is just by-product of your actions you take.
When your focus is only on outcome goals, there is a high chance you will make bad trading decisions as forced trading, breaking your trading rules on every other trade, revenged trading…
You have to ask yourself, what do you have control over? Do you have control over the outcome, or process?
THE PROCESS, of course!
You make decisions and then you take action. Once you have a profitable trading edge, you just need to focus on your trading process and money will follow.
You will never become consistent trader, if you will focus only on the money goals all the time. Consistency will not just come to you. You have full control over being a consistent trader. You simply apply consistency by following your trading plan (process) day after day, and on every single trade you take. Instead of being money oriented, learn to become process oriented. Develop the right trading skills, habits and focus just on becoming the best forex trader you can be. Money and everything else will follow.