Here’s Warren Buffett’s Top 10 Rules for success and how we can apply these rules to our world of Forex Trading. Anyone who is seriously in the financial world would have heard of Warren Buffett. If you have not, then here’s a short introduction on one of the richest investors around. Warren Buffett is a living legend in the world of investment and will likely go down as the greatest investor for a long long time…. He is known for picking up stocks that are undervalued by the market using his famed intrinsic value calculation. In this post, we study Warren Buffett’s 10 Rules of Success and how we can apply these rules to our world of Forex Trading.
Success Rules #1 – Find Your Passion
Whatever we do in life, we must have passion. If you want to be good in trading, well… you have to like trading. If you don’t like to read charts or learn about technical analysis, then trading might not be the profession you should be chasing. If you want to do well, you have to like it. It has to be your passion for you to success and excel. If you like to trade and learn more but do not have a solid strategy to build on… then here we suggest that you consider using our famed Price Action 5 approach or Morning Pips Strategy. Both these strategies are powerful and simple to implement.
Success Rule #2 – Hire Well
In the world of trading, fortunately, we don’t really need to hire anyone to trade for us. How this applies to the world of trading is that we need to work with good partners and that’s namely our Forex Brokers. If we “hire” a bad partner in our Forex Broker... then we are screwed. So hire well… and this is the broker we highly recommend. Click here to learn more.
Success Rule #3 – Don’t Care What Others Think
The trading journey is not a social journey. Stay with what you know and keep practicing what interest you until you get really good at it. It does not matter what others might think of your approach as long as you know it works, then it works for you. You don’t have to convince anyone else on your methodology.
Success Rule #4 – Read, Read, Read
No matter how good you think you might be… there’s always room to improve and learn more. Even if you do not want to change your method of trading, that’s just ok but continue reading to continuously improve your trading mindset and psychology. Continue to learn and take up different courses to improve your skills in general.
Success Rule #5 – Have a Margin of Safety
In the world of value investing, this is about buying into position that is below intrinsic value. In the world of Forex, it is getting in position only when the stars are truly aligned. In other words, you don’t have to trade everyday. You just really need to trade when the opportunity presents. So to have this margin of safety in the Forex World, be sure to be highly selective in your trade decision and wait for the signals to trade rather than just trading because you need to trade.
Success Rule #6 – Have a Competitive Edge
In any business including the trading business, everyone out there will trying to take your money…just like what you try to do which is to take their money. To have sustainable trading success, you will need a strategy that does not trade with the herd and one that keep you ahead of the herd.
Success Rule #7 – Schedule for Your Personality
Everyone has different personality that defines our trading style. Decide what you like… if you like active trading then you might be suitable for trading lower time frame charts. We do not like watching the computer screens all the day long and for that we trade higher time frame charts like H4 and Daily charts. We even developed our own automated trading solution to diversify our strategies and approach to market. You can find some of our best MT4 EAs here.
Success Rule #8 – Always be Competing
One of the biggest problem for traders is complacency. To continue to do well in your trading journey, you will have to continue to learn and to continue to monitor the market closely even if there is no good trade setup. This does not mean you have to trade… but it just means that you need to constantly know what’s going on the technical charts.
Success Rule #9 – Model Success
Learn from traders who have already done all the things that you want. Learn from their mistakes and also learn about their traits and their strategies that have made them successful.
Success Rule #10 – Give Unconditional Love
While we take risk everyday, it’s important to know what we are doing it for. And if it’s just for the money, it’s never going to be sustainable. We trade because we do it for something else bigger out there… for someone to have a better life. So do remember to remind yourself and not take time away from people that matter most.
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