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Exactly What Goes Into Making A Successful Forex Trader?

If you were to separate foreign exchange traders into two groups � those who are successful and those who are less than successful � would it be possible to pick out the characteristics which separate the two groups?

It is not really important what we do in life, which includes foreign exchange trading, however, no matter what we do, one thing that will have a greater affect on our success than anything else we do will be setting goals.

It is a simple fact that the human mind is at its best when it is given a roadmap to follow and, when setting a goal, you start the process of building your roadmap by clearly defining the destination for your journey. However setting a destination is not sufficient and you will also have to define the route to follow to reach your destination. Here is an example.

Imagine that you make up your mind to build a fortune as a foreign exchange trader, who doesn't want to after all! This is not however much help as any goal that you set needs to be measurable, otherwise you have no way of knowing whether or not you have reached it. So, at this point, you have to be clear about precisely what you mean when you talk about a 'fortune'.

Let us say therefore that you set a goal of making $1,000,000 in the next year. You now have a clearly defined destination. The next problem however is that, since you are almost certainly new to the world of foreign exchange trading, are still coming to grips with the ropes and possibly have limited capital to invest at this stage, realizing $1,000,000 in the next year is perhaps an unrealistic goal.

As well as being measurable, goals also have to be realistic. It is immaterial what goal you set for yourself in foreign exchange trading, but it must be within your reach. There is little point in saying that you are going to win Wimbledon if you have never even picked up a tennis racket.

So, instead of aiming for $1,000,000 let us think about setting a far more realistic target of say $120,000. Once we have done this, we then have to split this figure up into marker posts to put onto our roadmap and this can be done by viewing our target on a monthly rather than a yearly basis. This will give us twelve $10,000 markers. Now, if we continue along these lines we can then break our goal down further into $2,500 weekly markers.

Now we have something that we can view against our current experience and it is a quite easy matter to determine whether or not this figure is possible. Is it possible, in the light of your current experience, to make $2,500 trading Forex in the next week?

Your goals must be measurable and realistic, but they also have to be attainable. It is all very well to set a realistic goal, but you must also have the right tools, in the right place at the right time to reach that goal. If you are presently making $750 a week then you are probably not going to convert this into $2,500 overnight so, in this case, your goal is unattainable and you will have to go back to square one and start over again.

But, if $2,500 is attainable, then there is one further step that needs to be taken before you are ready to set off on your journey. Your final step is to paint a picture in your mind's eye of your destination.

Despite the fact that you have set a target of making $120,000 in the next year, the money itself is of course not really what you are aiming for, but it is what you can spend that money on that is important. So, having made your $120,000 what are you going to do with it? If you are planning to purchase yourself a new sportscar then paint a picture in your mind's eye of driving into the sunset with the roof down and then you will truly have a goal.

If you wish to be successful in foreign exchange trading then you have to set yourself a goal that is measurable, realistic and attainable and than paint a picture of that goal in your mind's eye. Do this and you will be surprised at how simple a matter it is to reach your destination.

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