The Psychology of a Winning Forex Trader
By Aaron Stokes

Each and every day I'm contacted by traders from around the globe and there seems to be a very common question floating in the air, a question that if answered with any degree of certainty could endow the inquirer with untold confidence and success. The question is simple but it's implications are powerful: "If I start trading Forex, what are the chances that I'll succeed?" If I answered this question by stating: "On average 80% of today's Forex traders will succeed" you might be justified in calling me crazy, however some 15 years ago one might be inclined to answer with such bold figures. Certainly it would not be uncommon for at least 50 to 60% of the chosen few Forex traders to achieve success in those days. The currency market was fresh and opportunities were wide open. Daily price movements were somewhat more predictable and the competition was not nearly as aggressive as it is today. As time moved on from the late 80s, early to mid 90s and on up to our Present day the success rate dropped drastically as the Forex market progressively became saturated with day traders; this in turn made for a more unpredictable trading environment. The "white noise" we experience intra-day is in part the efforts of the masses, each trader grabbing at what they can to secure their daily profits. However, the cold reality under present circumstances is that less than 10% of today's Forex traders succeed in achieving consistent profits. Let's take a closer look at the real ratio of winners to losers. You see, it's important to understand that this isn't a luck of the draw situation. When you look at figures like 1-in-10 there is certainly much more than meets the eye beneath these numbers. Let's explore this thought further. If you take 10 traders who have each asked the question "What are my chances at succeeding in Forex" and place them in a trading room together for any length of time, you surprisingly will not end up with 1 winner and 9 losers. The same holds true if you conducted this experiment with 100 traders, or even 1,000. But how can this be the case if the odds of success are 1-in-10? That is a very good question as within the answer lies one of the keys to your trading success regardless of which system, method or school of thought you subscribe to. You see, the 5 to 10% percent who are succeeding consistently are not asking self-defeating questions like: "What are the chances that I'm in the losing percentile?" and alternatively the 90 to 95% percent who lose on a regular basis are left completely bewildered at where they could be going wrong; constantly asking: "Why do I keep losing in Forex?" and inevitably receiving rather discouraging and uninformative answers. The answers may be "Because you're not good enough" or "You're not making enough pips per month", these answers do not help in the least as far as taking a hold of your financial destiny as a Forex trader. Clearly a shift in thinking needs to occur for fear that one might be left with the majority of those who are unsure of how to consistently succeed. Transitioning into the winning crowd involves adjusting the questions you ask from self-defeating questions to the sort of questions that will inspire you to find solutions, methods or systems that utilize your strengths. Rather than getting discouraged when you suffer loss, simply refocus and center your thoughts on a new empowering question. For example try not to ask: "Why do I keep losing these trades", rather try asking: "What can I do to start winning". They may sound like similar questions however the answers you receive will always be drastically different, and without a doubt these questions and answers will play a lead role in defining the destiny of your financial future as an investor. An empowering psychology is at the heart of every great Forex trader. The category we find ourself in more often then not is self inflicted simply due to the fact that we are in the habit of asking the wrong sort of questions. Don't underestimate your ability to find the answers you seek simply by asking positive questions and never fail to realize that this tool alone can play a large role in helping you to take control of your financial destiny.

Source: http://www.submityourarticle.com/articles/easypublish.php?art_id=18946

About the Author: Ranked in the Top 10 by Google as an International Forex Money Manager Aaron Stokes is a professional in the field of managed Forex accounts with an average of 10% growth per month on managed accounts. For details visit: http://www.forex-cipher.com