Forex Trading Psychology:Take Responsibility For Your Forex Trades

“He who blames others has a long way to go on his journey. He who blames himself is halfway there.  He who blames no one has arrived.” – Old Chinese proverb.

The buck stops with you!

It is important to see yourself as self-employed and accept 100% responsibility for everything you are now and you will ever be. We have to take full responsibility for our actions in life, and in trading. If we make a trade and it loses, then we don’t blame the markets, the computer, our spouses or our mentors (and especially don’t blame ME).

Only when we take responsibility can we actually act and do something about it. If it is always someone else’s fault, how can we improve? Traders simply have to be honest with themselves as to what happened in a trade if  they are going to learn anything at all by their losses.

The whole point of learning to trade is to understand what works, what doesn’t  and be able to adjust to changing conditions in order to come out ahead. It’s impossible to do any of these things if you’re not honest with yourself, and honest about what actually happened during a trade. The main point is this; you shouldn’t fall into the “blame anyone besides me” trap.

You must learn to take complete responsibility for your trading without any excuses. Successful traders will examine reasons for not following the rules, but by not taking responsibility you end up blaming others for your misfortune. You blame the person who gave you that hot tip or the guru who made a recommendation and of course everyone’s favorite place to lay blame, the market.

“It was the markets fault for not co-operating. It was Bernanke’s fault for speaking…”

Accepting 100% responsibility goes a long way to preventing those negative emotions of greed, fear, hope and many others from gaining control. Learning to master your emotions is over half the battle. If you can control yourself and follow the rules it will go a long way to making your trading profitable.

I want to say something now that’s a bit hard hitting and some people won’t like. If you don’t like what I’m about to say then don’t trade. It is simply this… Refuse to make excuses and stop complaining about the things in your life you’re not happy with. You’re responsible for your life and what you do with it. If there’s something about your life that you don’t like, it’s up to you to change it. You’re in charge. Instead of waiting for things to happen, make things happen!

Brian Tracy once said this is the mindset of the truly excellent person. I say it’s also the mindset of the truly excellent trader.

By |2013-03-03T05:01:40-06:00April 1st, 2012|Forex Risk Management, Phil's Forex Blog|1 Comment
  • Rosalinda says:

    eneFYp IMHO you’ve got the right answer!

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