#216: Why You Need To Think Like An Investor

Podcast: Why You Need To Think Like An Investor weekly video In this weekly video: 00:29 – Think like an Investor 00:50 - It takes time and effort to become a good Forex trader 01:25 – The retail trader chases the money 02:10 – Don’t try to live off your gains when you start trading 03:06 – An Investor looks to place less trades and is prepared to wait 04:40 – The longer term perspective – the bigger picture 06:30 – Make a percentage gain I'm going to explain why you need to think like a true investor in order to become a successful Forex trader. Let's get into that right now. Hi, Forex traders, this is Andrew Mitchem here, The Forex Trading Coach. Today is video and podcast number 216. Think like an Investor In this video, I'm going to be talking about why you need to think as an investor in order to become a successful Forex trader. Not just as a gambler as someone who sees Forex as a get rich quick scheme or someone who sees Forex as a way of solving financial problems that you may have or an easy solution, because it's not. It takes time and effort to become a good Forex trader Now, Forex trading, like all good things, takes time. It takes an understanding. It takes knowledge, investments, all those type of thing. You're going to get good times and bad times, without a doubt. The overall theme that I want to talk about and help you with today is you must think of trading Forex as an investor thinks. There's a big difference between most retail Forex traders who have maybe one or $5,000 and an investor who has maybe millions of dollars, certainly hundreds of thousands of dollars. There's a big difference in their mentality and their thinking. The retail trader chases the money You see, the retail trader ... Too many retail traders, they're chasing the dollar or the pound or the yen. Whatever it is you're trading. They're chasing the money right now because they need to make so many dollars per week or per month in order to live and survive and pay their bills. I truly understand that. I truly get that, but you cannot become a Forex trader just for the reason of trying to pay your day-to-day grocery bills, because that's not the way that you're going to learn to be a good trader. Once you understand how to be a good trader, paying your grocery bills is really ... It doesn't even come into the equation, because you'll do really well from your trading. Don’t try to live off your gains when you start trading But when you start, don't try and live off your gains of being a trader. Another reason for that is, for most people, their account size is not big enough. It's important when you start that you realise you need to get into this in order to learn how to trade. Look at making a percentage gain. Don't go chasing trades. Don't feel that you've got to be forced to be in trades all of the time. That's another problem that I get with so many traders. I say, "Look. Just send me some screenshots of your trades," and they're taking 20, 30, 40 trades in a day. I'm thinking, "Why would you do this?" All you're doing is just basically just placing trades and hoping that some of them are going to come right, and more than not will, and therefore you're going to make some money. All you're really doing, apart from tiring yourself out by sitting at the computer screen all day, is you're feeding your broker's pocket. You're lining their pocket, because you're taking multiple trades, and every time that you take a trade, they'll clip the ticket and make money from you. An Investor looks to place less trades and is prepared to wait An investor looks at less trades. They look at high reward to risk trades. They look at high probability setups,