Looking to improve your trading and your life? Look no further than this article. As the author, I can personally attest to the power of these concepts. They have helped me achieve success, happiness, and freedom in both my personal and professional life. So take my advice and read this article not once, but twice. Then, leave a comment telling me how you plan to use these skills to achieve your goals. Remember, following the core principles outlined here can help you attract anything you desire. And don’t forget the wisdom of Napoleon Hill – daily affirmations are essential to achieving long-term success in any field, including trading.
“What the mind of man can conceive and believe, it can achieve” –Napoleon Hill
This well-known motivational quote has a special place on the wall in my trading office. I recite it daily and recommend you do the same. For further personal development and success tips, check out Napoleon Hill’s videos. Additionally, I’ve compiled a list of 14 daily trading affirmations that can help keep you motivated and on the path to success in forex trading. Remember to read them out loud daily and incorporate them into your trading plan for optimal results.
- “If one can conceive and believe a goal, one can achieve it.” – Napoleon Hill’s famous quote serves as a powerful motivator, and I highly recommend reading his book, “Think and Grow Rich.” In my opinion, it is the best motivational literature ever written and can have transformative effects on both your trading and personal life.
- Repeating to yourself daily that you are a successful trader can make you more likely to take the necessary actions to become one. Without the belief that you can succeed, you will not be able to achieve your goal.
- Approach Forex trading like a business, and follow your trading plan strategically and logically. Avoid deviating from your plan. When you follow a comprehensive trading plan based on your strategy, your trading will be more effective since you were objective and clear-minded when creating it.
- Keeping a Forex trading journal and using it can set you apart from other traders. It is critical to maintain a record of your trading performance to have tangible evidence of your abilities. Additionally, a trading journal can help you remain accountable, disciplined, and organized.
- Proper risk management is essential to trading success. One should not give too much importance to any one trade and never risk more than they are comfortable losing per trade. Remember to take small losses and understand that losing trades are a natural part of doing business in the Forex market. Trading success is defined over a large series of trades, not just one or two.
- My approach to trading is to follow the market’s actual behavior, rather than my own expectations or desires. Ultimately, it’s irrelevant what I want the market to do; it will do what it wants, so my task is to learn how to interpret its price movements and take advantage of them, rather than fighting against them.
- Before entering a trade, I always ensure that the potential reward is significantly greater than the risk involved. This means evaluating the market structure and confirming that there is a logical basis for expecting a risk-to-reward ratio of at least 1:1.5 or 1:2 or better.
- While it’s fine to check the market periodically, constantly watching charts after a trade has been initiated is counterproductive and can lead to impulsive decisions and significant losses. I prefer to use a “set and forget” strategy, letting the market work on its own without my intervention.
- Both profits and losses can evoke strong emotional reactions that can cloud our judgment and lead to irrational trading decisions. To avoid this, it’s important to remain detached from the outcome of any given trade, taking at least 12 to 24 hours to remove yourself from the markets after closing a position.
- Whenever possible, I aim to trade in accordance with the dominant daily trend. While there may be opportunities for counter-trend trading, focusing on the prevailing trend is typically the most reliable path to success in the financial markets.
- Rather than overtrading or acting impulsively, I am patient and wait for favorable trading opportunities to present themselves. By approaching the market like a sniper, I can increase my chances of success and avoid the pitfalls of overtrading that plague many traders.
- I’m a professional trader and thus I will not engage in gambling my money in the markets” -Gamblers make random bets in casinos or elsewhere, and traders who don’t have trading plans or who don’t follow their trading edge are also gamblers. It’s really easy to click your mouse and put a trade on and hope to get lucky, kind of like pulling the arm of the slot machine at a casino. The difference is that you can actually develop and implement a high-probability trading edge like price action strategies when trading the markets. So, it’s up to you if you want to be a gambler or a trader.
- “I will not interfere with my trades without just cause” – This one is similar to number 8, but it’s so important I wanted to touch on it again. Interfering with trades is usually an emotional reaction born out of risking too much or over-trading, both of which cause you to become overly attached to any one trade, which in turn causes you to over-analyze your trades and meddle with them once they are live. There are times when there’s just cause to interfere with your trades, such as a giant pin bar reversal that forms counter to your position, or some other opposing price action. However these instances are rare and it takes time and effort to develop your discretionary trading sense to the point where you can “effectively interfere” in your trades.
- “News and fundamentals will not influence my trading decisions” – Traders who fall into the temptation to over-analyze the thousands of Forex news variables that occur each day, usually end up losing their trading accounts pretty quickly. All market variables are reflected via the natural price movement of the market, so by analyzing and trying to “figure out” what’s going to happen by reading economic news or watching CNBC you’re simply adding unnecessary and confusing variables to your trading approach.
Please remember to share your thoughts in the comments section. I would like to hear how you plan to apply these valuable skills to enhance your trading or personal life.
For further insights into my trading philosophy and effective price action trading strategies, feel free to explore our Forex course and members’ community available at this link.