It is that time of the year again, the time for traders to set up their annual goals and Forex New Year resolutions.
Yes, I know your Forex New Year Resolution is to make money, indeed it was also my number one goal when I started trading 10 years ago.
However, I am sure you have already understood that making money once is not everything in Forex, or anywhere else in the world, but keeping it consistent is the key.
During my 10 years of Financial Markets experience one of my most favorite ways to keep myself pumped up with the will and the motivation has been looking up for someone ahead of me and learn from that person’s life-path, check his/her quotes and learn from him. That one person I love to follow is Warren Buffett.
In this post I will share Forex traders New Year resolutions based on Warren Buffett quotes. I am sure you will find yourself at least in some of these quotes. So let’s go…
Since this article is about looking forward and setting trader New Year resolution, let’s start with my favorite one:
“What we learn from history is that people don’t learn from history.”
As hard as it may sound, traders tend not to learn from their mistakes. They often hide behind the notion that “This time it’s different” and of course they keep on failing. So guys, here is your first Forex New Year resolution:
1- I WILL KEEP MYSELF A TRADING JOURNAL FOR MYSELF AND WILL REVIEW MY WEEKLY PERFORMANCE EVERY SATURDAY
Next let’s look into the most trending quote from Mr. Buffett: “Risk comes from not knowing what you’re doing.”
In every training I give, every conference I visit or conduct, the most common request I receive is “Can you give me the indicator you use so that I can be rich too?” Well, I understand the reason behind this question, but you have to also understand that even the best indicator will not be much beneficial if you have not got the necessary knowledge. Here goes the second Forex New Year resolution:
2- I WILL LEARN THE CONCEPT AND THE LOGIC FIRST TO AVOID ANY POSSIBLE SURPRIZES
“What counts for most people in investing is not how much they know, but rather how realistically they define what they don’t know.”
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Unfortunately, even the traders who started trading yesterday tends to have know-it-all attitude, hence tend to place big financial bets. Failing to learn from their own performance and mistakes, they keep repeating their mistakes over and over again, without any precaution over and over again. But often the biggest mistake they make is expecting to become a billionaire over a single shot, hence destroying complete risk management concept.
3- I WILL NEVER EXPOSE MORE THAN 5% OF MY EQUITY AT A GIVEN TIME!
“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ” and then he continues “it is not necessary to do extraordinary things to get extraordinary results. … By periodically investing in an index fund, the know-nothing investor can actually outperform most investment professionals.”
This is probably one of the most FX applicable quotes ever which goes straight in line with one of the most common Forex Trader Mistakes: OVERTRADING
4- I WILL STICK TO MY TRADING STRATEGY & WILL NOT BE OVERTRADING
“Do not save what is left after spending, but spend what is left after saving.” Although this might not be directly applicable to FX trading, I love to correlate this quote to using Stop Loss and Take Profit levels.
Often traders will not have their SL and TP fixed and will start stressing when they are in big trouble.
5- I WILL NOT TRADE WITH MY EMOTIONS!
I will end 2016’s New Year Resolutions with my most favorite quote of Warren Buffett: “Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.”
The key take away of this quote as a new year resolution is the fact that there are too many “trainers” out there who claim to have the “holly grail”, but the reality is the fact that they are just another failure who are after your “DUMB” money.
So, here is our New Year Resolution for you all: We will deliver you the best Forex Education via Live Forex Webinars and Pro-trader challenge world tour.