You’ve probably heard that when it comes to trading you should play your strengths?
I bet you’ve most likely read this in trading psychology articles.
The only problem is that these articles focus on minimizing weaknesses, rather than identifying and improving your strengths.
You see there’s a common notion that when you tackle your weaknesses you automatically enhance your forex trading performance…
But let me tell you that isn’t always the case.
That’s why I want to show you a different approach by building your strengths first so that you can work around your shortcomings.
Here’s how you can identify your trading strengths
Identity #1: Review your Forex trading journals
If you read what I publish regularly, you’d know that I often emphasize the importance of keeping a detailed Forex trading journal.
So put them to good use!
Review your trading logs and pinpoint the instances where you think you performed well.
Identify your top ten most profitable trades and take note of the following:
Which pairs did you trade?
Did you stick to your trading plan?
Did you base them solely on technical, fundamentals, or were they a combination of both?
How long did you hold on to your trades?
Aside from asking yourself these questions, identify other common factors that helped you win those trades.
Identity #2: List down your strengths as a trader
I know that it can be a daunting task, but renowned trading psychologist Brett Steenbarger came up with the idea how you can go about it.
Citing the VIA Survey which was created by the VIA Institute on Character to help people assess their strengths, you need to identify your top five from the list below:
creativity, curiosity, open-mindedness, love of learning, wisdom, bravery, persistence, integrity, vitality, love, kindness, social intelligence, fairness, leadership, forgiveness, modesty, prudence, self-control, appreciation of beauty, gratitude, optimism, humor, spirituality…
Now what I want you to do is think of specific ways how you could apply them in your daily forex trading approach.
For example, I ranked the love of learning as my biggest strength.
I think I can apply this more by studying different systems and by reading more books on Forex trading.
Identity #3: Ask for other people’s opinions
Although self-reflection is helpful, we may overlook a few traits that other people can easily identify in us.
So take the time to ask for outside opinion.
Ask your colleagues, trading mentor or coach, and friends what traits you have which they think make you a good trader.
Compile their input and compare them to your own list.
You might be surprised to see how other people perceive you.
Just like identifying your weaknesses, it’s equally important to know what you’re good at, regardless of whether you’re on a losing streak or looking to raise your game.
Unleash your potential using these three identity strengths
Don’t get me wrong. The point of this 3 step process is not to ignore the importance of being able to identify your weaknesses.
I just think that identifying your strengths is as important in realizing your full potential as a successful Forex trader.
Remember, you need to identify common factors that helped you win your trades by reviewing your Forex trading journals.
You then need to list your top five possible strengths from the list that I gave you.
And lastly ask for other people’s opinions what traits they think make you a good trader. Compare them to your own top five list and conclude.
Here’s to profitable Forex trading.
Analyst, Noah’s FX Waves