HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

The power of trading psychology


Identifying your strengths as opposed to weaknesses can really help you step up your trading game. Learn how to do it with three simple steps.

Various articles nowadays point to our weaknesses, be in trading psychology, risk management, or strategy. These articles focus on minimising one's weaknesses, while what you should also be doing is improving your strengths. Focusing on weaknesses can have reverse psychology on a trader and result in a negative attitude while focusing on your strengths can reinforce your self-esteem and grounding for success.

Sure, it's essential to tackle your weaknesses, and most traders learn from mistakes by doing just that. However, it is not always the key to success. A different approach to success is building your strengths to work around your shortcomings.

Today we're on a mission to identify your strengths, and this article will help you do that in three simple steps.

Firstly, make sure to review your trading journal.


By now you should have one, and if you don't, then you should start one as soon as possible. We cannot stress enough the importance of keeping a detailed record of all your trades. In essence, a trading journal is a perfect tool for seeing your strategy from a different perspective, but it's also a useful tool to identify your strengths.

If you already have a trading journal, take it out and pinpoint those instances where you think you performed well. Identify your top 10, maximum 15, profitable trades and find what they all have in common. Ask yourself the following questions:

Identifying your strengths by reviewing your trading journal is the first step to success.

Step two is listing down your strengths as a trader.


The orthodox way to go about it is by involving your friends, and people you know professionally and asking for their feedback. However, as Forex is a very personal experience, you might want to start without engaging others. Questions you might want to ask yourself are:

Do not to overthink it. Try identifying yourself with simple traits like creativity, love, kindness, and it will help you assess your strengths in a more natural way. You can identify patterns with the use of your trading journal. Lastly, you must realise if you use your strengths and patterns to optimise your trading. For example, let's say your self-portrait is the love of learning, and your pattern is long-term trading, you can use these strengths to learn and work on improving trading systems for long-term traders.

Thirdly and lastly, once you've given yourself a self-portrait, you should ask for other people's opinion.

This way you will be able to either confirm your strengths and, or identify new ones. Be open to assertive criticism. Self-reflection is essential, but you also need to understand how other people perceive you to step up your game. Don't be afraid to ask your colleagues, trading mentor, friends what traits in their opinion make you a good Forex trader.

You might be surprised to hear what they've got to say. For example, I identified myself as pragmatic, and my pattern was somehow confusing being short to long term trading. I was ready to believe that I cracked the key to success by identifying my strengths until I asked my friends and Forex colleagues for their opinion. I heard that I'm pragmatic, which confirmed my self-portrait, but also, indecisive! I was shocked, but I instantly understood why they said so. My strongest trades were short-term, to the extent where some of my colleagues we inspired by my method. Through their criticism, I was able to realise that a pattern was my strength. And, long-term trades that I was identifying as my pattern were, in fact, a result of my indecisiveness. That's why I wrote earlier, that it's good to be open to assertive criticism. It helps you identify the best traits you might have and once you know what they are you need to embrace them to the fullest.

Don't be afraid to ask your colleagues, trading mentor, friends what traits in their opinion make you a good Forex trader.

That's all it takes, three steps, a couple of questions and you might become the best version of yourself.

To wrap up let's look at the aforementioned psychological aspect and the effect that identifying your best characteristics has on your trading psychology. It can work absolute wonders because you nurture yourself with positivity which motives! And don't get me wrong, I'm not saying that you should start ignoring your weaknesses, that's not what this article intends to do. Instead, it's to help you realise your full potential as a trader through learning from your mistakes and identifying your best qualities.

Hopefully, this article will help you overcome any shortcomings you might be experiencing. In all honesty, the three-step method described above helped me a lot when I felt like I could be doing much better, but I couldn't identify my best qualities as a trader. So, I wish to say you're welcome and enjoy your new trader self.

#source


RELATED

In the red: How color affects a trader’s behavior

Have you ever wondered how the colors on the chart affect your trading? Color has a powerful effect on our psychology and emotional state. The psychological effect of color...

Top 3 Meditation Practices for Forex Traders

Trading is often a very stressful job that requires traders to be in a constant state of concentration. It’s no secret that following theory is only a part of what traders need to do to become successful...

The psychology of Forex trading

The financial market is rich in opportunities that are available to anybody who is interested in earning money. Many traders succumb to the impulse and...

How to set your financial goals and follow through with them

Want to set financial goals for 2021 but have trouble with achieving them? There is no actual formula to how you can make this happen, but there are certainly...

Common Trading Mistakes and How to Avoid Them

Have you ever wondered what helped all those professionals of Wall Street become successful? You will be surprised, but the key to their reached heights is hidden in their mistakes...

Cognitive Bias That Can Affect Your Trading

A cognitive bias is a systematic flaw in reasoning that can lead to making wrong decisions while investing. A common maxim in investing is that "you are your own worst enemy"...

Trading mistakes every trader should avoid

The volatility of the market makes it more exciting to traders, which can be a trap because of greed takeover. Some traders fall victim to making one or several...

Five Reasons Why Traders Lose Money

By various estimates, 90% of traders have lost their deposited funds (completely or partially) at least once while trading in Forex. We compiled the most...

Boring trading: reasons why your trading is not fun anymore

Sometimes you realize that you fell into a rut and your trading got boring. You've lost that passion and drive, you’re not excited like at the very beginning when you were making...

Psychology Of A Trader: How To Deal With FOMO?

Have you ever caught yourself in a situation where you feel anxiety over the fear of missing out on a specific trading opportunity?

Stay Away From Suspicion

Suspicion can damage the image of what we perceive as real. When you choose to do what you like but your mind is clouded by suspicious thoughts, then there...

Human resilience: the lessons we took from the pandemic

Human resilience in the face of a public health risk and economic disaster does not mean that people haven't experienced difficulty or anguish...

Transforming Tension into Triumph: Mastering the Mindset for Effective Trading

The psychological landscape of trading financial markets is both complex and nuanced, requiring not only technical acumen and strategic prowess but also a mastery over the inner game...

How to be a Successful Trader? Tips to Improve Your Trading Mindset

You might have heard a lot of trading coaches say that a positive trading mindset is crucial if you want to achieve something in the trading world. Sounds unlikely, doesn’t it? But reality shows that trading mindset is...

How our fears prevent us from quitting the unsatisfying career?

You may have heard the famous quotation: "Have the courage to follow your heart and intuition. They somehow already know what you truly want to become". There are the...

Is earning money online trough forex trading really possible?

Well - it is - but it is not that easy. You cannot enter the financial market expecting to become a millionaire within a few days. But if you are willing to put some time in it...

Five Trading Myths You May Believe Are True but Aren't

Want to know some truths about trading? Regrettably, the trading world is one of the spheres with many trading myths – things that sound like facts but are not...

Errors of traders when opening a transaction

Human's brain was formed in the conditions very different from the ones traders have to work with now. Many decision-making patterns characteristic for...

Mastering Trading Psychology: A Tale of Two Traders

Trading psychology is a critical yet often underestimated aspect of trading, and its impact can be the difference between success and failure. To shed light on this topic...

How to Cope with Your First Failure on the Market?

If you've suffered your first loss trading, you may feel like giving up. But, remember, this is a turning point for you and your trading journey. Stop now, and you will...


Editors' Picks

How to Choose the Best Forex Advisor 2025

Key Factors to Consider When Choosing a Forex Advisor. Risk Management. Fees and Costs. Compatibility with Your Trading Style.

Automating Success: The Benefits and Risks of Using Forex Expert Advisors

This article explores the benefits and risks associated with using Forex Expert Advisors, providing insights into how traders can maximize their potential while mitigating potential downsides.

Best Forex Brokers 2025

By prioritizing factors such as overall rating, regulatory compliance, trading conditions and platform reliability traders can make an informed decision that aligns with their trading needs and aspirations, setting the stage for a potentially prosperous trading journey.

The Top Forex Expert Advisors 2024: Performance, Strategy, and Reliability Review

An annual roundup reviewing the most successful Forex Expert Advisors (EAs) based on their performance, strategies employed, reliability, and user feedback. This piece would provide insights into which EAs have been market leaders and why.

The Evolution of Forex Expert Advisors: Navigating the Path of Technological Revolution

The concept of automated trading has been around for decades, but the accessibility and sophistication of Forex EAs have seen significant advancements in the past few years. Initially, automated trading systems were rudimentary, focusing on simple indicators like moving averages.

Best Forex EAs – Forex Expert Advisors Rating

Expert Advisors (EAs) Rating features high-quality Free and paid Forex EA most popular on the market today.

FP Markets information and reviews
FP Markets
81%
RoboForex information and reviews
RoboForex
77%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.