The 3 Pillars of Successful Trading Business is like the 3 Wheels on a Tricycle.
Remove 1 wheel and it will never bring you to the destination.
If you try and push it to move forward, it will still move but with an abnormal condition plus you might ended up destroying the tricycle itself, from the engine through its frame and chassis etc.
In Forex Trading there is also the main Pillars that if you remove any one of them, you’ll never get ahead.
You’ll will never get the result that you’ve always wanted.
And if you try to push and move forward without one of them, you’ll always ended up on a failure.
Trust me on that!
Mindset or Trading Psychology, Money Management and Method (which include your market analysis and the trading system that you establish).
This are the solid foundation that you really want to have if you are serious about trading.
Anything will definitely start from a proper mindset. This is not just about learning about any business related course or something to set you up.
But you have to set your mind to be mentally prepared since you are establishing your own trading business.
The result of it are solely depend on you, everything that you decide comes from your mind. Your progress, and your outcomes is the result of your actions and your actions are based from what your mind decide.
This will be your “responsibility”.
Forex Trading is not just an easy money that you’ll get when you push the button on the trading platform. You have to set on your mind that this will be your lifetime source of income. You have to take full responsibility on how you can protect your trading business capital more than anything else.
Earning potential in trading is limitless, you can bag huge amount even in a single trade at the same time incur consecutive losses And if you don’t have the right mindset on how you will handle those losses and profits, you’ll end up frustrated and become emotionally dis-appointed resulting to bad decisions that could end you in losses.
In most cases, if you’re expectation fails you, that’s the time where most of emotional feeling becomes involves on the decision making process.
But like any other business if you don’t have a proper mindset towards what will be your direction, you’ll be most likely ended up in failure.
And the common mistakes why most business owners fails right after their started is that they are not mentally tough, they just give up and failed to continue and move forward.
They are easily get down and emotionally stressed, I been there and done almost everything, I even quit and ditch my trading for a while, It took about 3months without trading before a realize something.
Mindset is critically important as it will drive our Action to get the Result that we wanted.
This means you have to develop psychological rules that will keep you on track in the constant temptation and uncertainties and a lot of obstacles on your trading business journey. You have to develop a winning mindset that can help you all throughout you trading process.
If you are really pushing to start your online forex trading,
I want you to ask yourself the following questions before you decide this business venture.
(1). Why do I need this trading business?
(2). Why is that important to me?
(3). Why do I want this?
Be true to yourself, because it will tune your mind to the right mindset and direction.
2. MONEY MANAGEMENT
Money attracts Money More Than Anything Else
If you want more money, you have to attract it, seduce it and once you have it, protect it at any cost.
It does really apply on all personal aspect of life, we should not be a hater of money.
As the great Warren Buffet rules on Investing Money:
Rule 1: “Don’t Lose Money”
Rule 2: “Don’t Forget Rule No. 1”
And have you realized what really separates those successful or rich people from poor people?
Rich People understand and knows that “Money” is just a tool, it is not how much you earn or make, but what you do on the money that matters.
Hard fact but it hurts you deep inside, right??
I feel for you, when I first read and understand it, it really changes the way I think about money.
Rich people protect their money so when an opportunity knocks, they have a lot of cash to use, and investment in while the poor continue to spend/splurge on things that are not really important. I am guilty of this, I prioritize buying gadgets, spending more of my wants instead of saving and protecting my hard earn money.
As an employee, I view money as means to buy things or pay for needs/necessities to survive. While rich view on money as a tool and vehicle that needs to be foster and maximize to grow. They have a high respect on the money that they have.
To be successful in FOREX Trading, above statement does really applies also, it is now how much capital you have but what you do to protect that capital that matters.
Yes, that sounds a bit confusing, but before you aim a profit, you must know first how much money you are willing to lose and in order to protect most of your capital? Because in trading, your number one priority is to protect your capital, how can you even trade if you risk all of your capital in one trade, and if you lose, boom!! Goodbye trading capital.
Professional Trader understand that handling your money properly is one of the 3 Pillars of Being Successful in Trading.
It does really matters also how much money you lose when your trades goes wrong and how much money you make when you trades are right. This will reflect on how you manage your trading capital, protecting and saving it to use once a high probability opportunity takes place.
The third and last of the 3 Pillars of Successful Trading is your ” METHOD”. The method which includes how you find trade opportunities, market analysis and the system or process you follow in a constant basis.
To be a profitable, your trading business must have a system or STRATEGY on how you will generate profits over the market.
In a normal business, this will be your business strategies or system how you can have an edge over your competitors.
This will be your method, system on (1). Identifying opportunities to trade, (2). When to Buy or Sell (3). Where to place your exit, which should include the following 3 Key points in every trades that you will have:
- Entry Price – The price which we place our “buy or sell”
- Stop Loss – An automated “Exit” or “Loss” price when your trades becomes invalidated
- Take Profit – An automated “Exit” price where your trades makes “Profit”
Knowing when to buy or sell comes from knowing what the market price trend is.
You are buying when the price is on UPTREND and sell when the price is on a DOWNTREND.
One common method or strategy in identifying opportunities to trade is by analyzing the market price history using technical tools such as drawing lines to mark and determine the “Support and Resistance”, understanding the Price action structure and its context.
When you hear the word 3 Pillars of Successful Trading, remember the the “3 M”.
Mindset, Money Management and Method.
It is not just about how much money you have, how good your trading system is or how mentally tough you are. The Key here also is the consistency to learn, enhance and adopt the 3 Pillars in order for you to get the Success in Trading. Have You Learned Something? Please feel free to share this post to inspire others. I believe that sharing is a gift which in return will give you more. Inspiring You To Succeed,