Know your strengths and weaknesses - FTMO
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Trading Psychology

Know your strengths and weaknesses

This week we have a new article from our colleague Nelly who you might remember from one of our recent videos about Mindfulness in trading. This time we will once again focus on trading psychology and will talk more about strengths and weaknesses in trading.

Do you know what your strengths and weaknesses are?

This question that recalls an average job interview is very familiar to all of us, isn’t it? But do we really know the right answer and how is it beneficial for us in trading?

Knowing your strengths and weaknesses is a crucial step to becoming and remaining a successful Forex trader. It’s a must to determine the key personality traits to maximize the impact of your strengths and minimize the potential harm caused by your flaws. 

This process is always different for every single Forex trader simply because each person has their own characteristics, experience, and psychology. Thus, an outstanding recommendation for one Forex trader can be mediocre or simply a bad one for another. 

What works for some traders may not work for others.

It is crucial to understand our trading psychology and align it with other key trading components such as our strategy, trade management, risk management, and the overall trading plan. Whoever finds this delicate balance will make profits. 

Find harmony among these elements. Maximize your profits. Become a successful trader!

Any mismatch within these components will lead to imbalance and every component is crucial. Knowing yourself makes you an outstanding trader.

We need to work on our weaknesses and improve our stamina, but those in the trading profession usually tend to focus exclusively on their weaknesses. What we would suggest to you is to mainly focus on and develop your strengths

Think of it like this: the weaknesses and strengths are two sides of the same building. If the weakness is an open back door that costs you money, your strength is your ability to use the same back door to make more profit.

You need to be your number one fan, believe in yourself and clap for yourself. But also stay humble and aware that there is always space for improvement.

Focus on your strengths but don’t forget about your weaknesses. Being aware of your flaws enables you to improve and become the best version of yourself.

How to identify your strengths and weaknesses?

The best way to find out where you make the majority of mistakes is through practice and self-awareness. What are your thoughts? What do you feel? Are you struggling with greed? That may come from your impatience. Besides greed, you may be struggling with your (false) hope that appears due to the lack of discipline. Be mindful while trading, journal all your trades and try to be objective and 100% honest with yourself. 

You can also try some personality tests. They may help you get to know yourself better.

However, not all strengths and weaknesses are related to personality traits. Some qualities can also be related to the realities of your life, for example, how much time you dedicate to markets and trading.

Your self-awareness is essential. 

Have you read our article about mindfulness in trading? Understand that what you think your strengths and weaknesses are and what they really are may be two completely different things and if you aren’t objective in identifying these good and bad traits, you might end up trading in a style that’s the complete opposite of the way you should be trading. You need to become an observer and find the best way for yourself.

The importance of this last point cannot be overemphasized. It’s incredibly difficult to analyze our strengths and weaknesses without bias. 

Thus we recommend contacting our performance coach who will help you see everything with clarity.

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