Most publications on forex trading psychology focus on minimising one’s weaknesses rather than finding and enhancing one’s strengths. This time, let’s take a new approach by focusing on your strengths first in order to compensate for your weaknesses.
Before we get ahead of ourselves, what are strengths and why is it essential to identify them?
Simply explained, a strength is an area in which you excel. However, if you do not use that particular strength to achieve a positive end, you may not identify it or perhaps perceive it as a deficiency.
How then can you determine your trading strengths? The following steps may be of assistance:
1. Review your trade records
If you frequently read my trading psychology blog, you would know that I highlight the significance of keeping a detailed forex trading notebook on a frequent basis. Therefore, utilise them! Review your trade logs and highlight the situations where you believe you performed well.
Determine your ten most lucrative trades and take note of the following: What pairs have you traded? You followed your frorex trading plan, correct? Were they based simply on technical or fundamental factors, or were both considered? How long did you keep your investments?
Identify additional variables that contributed to your success in these trades in addition to the answers to the above questions.
2. Identify your forex trading strengths
I am aware that it can be a challenging task, but famous trade psychologist Brett Steenbarger came up with a plan for how we can approach it.
Let’s utilise the VIA Survey, which was developed by the VIA Institute on Character, to assist people evaluate their strengths. Try to determine the top five: Creativity, curiosity, open-mindedness, love of learning, wisdom, courage, perseverance, integrity, vitality, love, kindness, social intelligence, citizenship, fairness, leadership, forgiveness, modesty, prudence, self-control, appreciation of beauty, gratitude, optimism, sense of humour, and spirituality.
Done? Now, I want you to consider SPECIFIC ways in which you could implement these in your daily trading. For instance, I regarded my enthusiasm for education as my greatest strength. I believe I can make greater use of this by studying various systems and reading more books on forex trading.
3. Find out what other people think
Although self-reflection is beneficial in forex trading, we may ignore a few features that others can clearly perceive in us. Therefore, it is important to acquire an outside opinion. Ask your coworkers, trading manager or coach, as well as your friends, what qualities make you a good trader. Compile their suggestions and compare them to your list. You may be surprised to learn how others perceive you.
It is just as crucial to recognise your strengths as it is to identify your weaknesses, regardless of whether you’re on a losing streak or trying to improve your game.
This is likely due to the common belief that addressing one’s deficiencies will immediately improve one’s trading success. However, this is not always the case.