A traders mindset is vital to his success, Forex trading is a brutal arena and your on your own and you rely on the skills to win. Today many traders think they can follow others and buys mechanical buy and sell programs thinking he can  win with no effort but this trader always losses. If you really want to win – you need the correct traders mindset. 

In terms of traders who make big gains, they all have one thing in common – they have the right psychology. The right psychology involves being able to stand along, think for yourself, trade with discipline and stick to a plan.

Disciplined traders are not just disciplined in trading, they tend to be disciplined in life. They make effort in their lives and learn various skills and apply them to reach their goals - their confident in themsleves and their ability which is the opposite of most Forex traders! Most Forex traders simply don't make the required effort to get the right education and approach Forex trading with the wrong mindset. Here is a quote which in my view, gives a clue to what it takes to succeed as a Forex trader:

“Don't get set into one form, adapt it and build your own, and let it grow, be like water. Empty your mind, be formless, shapeless — like water. Now you put water in a cup, it becomes the cup; You put water into a bottle it becomes the bottle; You put it in a teapot it becomes the teapot. Now water can flow or it can crash. Be water, my friend.” (Bruce Lee – A Warriors Journey)

Bruce Lee would have had the right mindset to win as a Forex trader because - the same mindset that is needed to win at martial arts is the same one which is needed to win at Forex.

A skilled martial arts fighter, learns skills and knows how to apply these skills which they adapt to the situation they see before them. They don't fight ewvery opponent inthe same way. They have skills, confidence in them and the courage and discipline, to use them at the right time.

The concept of martial arts is the same as trading Forex. You need to adapt your skills to the situation you are confronted with and make no mistake – the Forex market is a formidable opponent which will constantly move in ways you don't expect. If you are not ready and able to adapt your trading plan in line with its movements  it will surely kill you.

Adapt Your Style for Different Situations

  "A good martial artist does not become tense, but ready. Not thinking, yet not dreaming. Ready for whatever may come. When the opponent expands, I contract; and when he contracts, I expand. And when there is an opportunity, "I" do not hit, "it" hits all by itself". (Bruce Lee – Enter the Dragon)

Bruce Lee was a good at martial arts but each fight would be a different challenge for him – no two fights would be the same but the reason he was so good was simple – he was able to adapt his style to the situation he was in and react at the right time, using his skills in the correct way to ensure he defeated his opponent.

The Forex industry is one where most traders want to follow set formula's or signals and think they can use the same approach to every trade but this is like Bruce Lee trying to attack his opponent in the same way in each fight. It may work sometimes but other times of course, he would lose. In fact, if he used a rigid approach in each fight, he would end up getting beaten in far more fightS than he would win and this really should be common sense but not to Forex traders.

Forex Trades There NOT All the Same

Most Forex traders see a rigid trading arena and think that a set of rules, can be rigid, never change and lead them to victory but their adversary (the market) is fluid and changing all the time. The idea “being like water” is to adapt yourself to the situation your in and know your adversary and adapt, your skills to combat his. Its the same in the market, no two trading set ups are exactly alike and you need to use your skills, in different ways and at different times, to emerge victorious and with profits.

Final Words

If you want to get the right traders mindset and the correct psychology to win at Forex trading then, you can learn a lot from martial arts.