greg michalowski copyright 2013 “having the mindset of a forex trader” fxstreet webinar...

G R E G M I C H A L O W S K ICOPYRIGHT 2013 WWW.FXDD.COM

“Having the Mindset of a Forex Trader”FXStreet WebinarFebruary 19th 2013Greg MichalowskiFXDDChief Currency AnalystTwitter: gregmikefxwww.livestream.com/fxdd

G R E G M I C H A L O W S K ICOPYRIGHT 2013 WWW.FXDD.COM

DISCLAIMERAll news, opinions, research, data, or other information contained within this presentation are provided as general market commentary and do not constitute investment advice. FXDD expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information.

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Who thinks trading is easy?

G R E G M I C H A L O W S K I

Who thinks it is one of the hardest things they have ever done?


Trading Forex is not easy…



…but a lot of things in life are not easy• Hitting a Golf Ball straight/consistently• Making the NFL Playoffs (37.5%). • Winning the Super Bowl (3.125%)• Owning a restaurant after 3 years (40%)• Getting into Harvard (6.25% of 2010 applicants)• Graduate from college (27%)• Getting a Masters degree (10%)• Staying Married (40% divorce in the US)• Raising Children• Saving money• Getting anything done in Washington (0%)


COPYRIGHT 2013 WWW.FXDD.COM G R E G M I C H A L O W S K I

Difficulty has never stopped me

“When the going gets tough….”

…the tough GET GOING”


In her book, Mindset, Carol Dweck wrote about how people tend to have a:

• Fixed Mindset, or a• Growth Mindset

Traders need to have a Growth Mindset


How do you “GET GOING” in trading?


You need to develop and understand the “Growth Mindset” of a trader. What are the character traits of a trader? What are they thinking and how do they act?

How do you “GET GOING” in trading?


Growth Mindset of a Forex Trader

• Disciplined but Aggressive too• A Loner but a Crowd Follower too• A Winner but a Failure too• An Anticipator of the future but with a Focus on

the past and present too• A Devoted Lover but a Swinging Bachelor too• A Fear Conqueror but a Greedy Bastard too• A Risk Taker but a Risk Avoider too


A Myers Briggs personality classification for a Forex Trader would be an:• Introverted Extrovert, who uses • Senses and INtuition in his • Thinking and Feeling while using • Judgment and Perception in evaluating trading

opportunities.

That makes forex traders a “I-E-S-N-T-F-J-P”


Growth Mindset of a Forex Trader• Disciplined but Aggressive too• A Loner but a Crowd Follower too• A Winner but a Loser too• An Anticipator of the future but with a Focus on



Disciplined but Aggressive too

Disciplined: Forex Traders need to focus on being disciplined to the point of being boring.

The typical successful forex trader will not wander far from what is normal for them. If “the market” is not behaving correctly, they will choose to not trade versus forcing an undisciplined trade.


Disciplined but Aggressive too

Aggressiveness: Don’t confuse boring with a lack of aggression.

Forex Traders whose disciplined method for trading is signaling a trading opportunity,will aggressively - and confidently - execute the trade with little fear.


Growth Mindset of a Forex Trader• Disciplined, but Aggressive too• A Loner but a Crowd Follower too• A Winner but a Loser too• An Anticipator of the future but with a focus on the

past and present too• A Devoted Lover but a Swinging Bachelor too• A Fear Conqueror but a Greedy Bastard too• A Risk Taker but a Risk Avoider too


Loner but a Crowd Follower too

Loner: Trading is a lonely endeavor. Not only do most traders sit in an office by themselves, but they - and only they - “own” each and every buy and sell decision they make.

Traders need to conquer the mindset of being a loner.


Loner but a Crowd Follower too

Crowd Follower: Trading decisions may be individually “owned” and are the full responsibility of the trader, but traders who understand the mindset that they need follow the crowd at the right levels, benefit more from trends.

Since retail traders cannot move “the market” themselves, they are at the mercy of those who can. Applying technical tools defines the bullish/bearish bias of the crowd. Success will come by having the mindset to follow the crowd.


A Winner but a Loser too

Winner: Forex Traders need to have a mindset that you need to win to survive. Winning should make traders feel good. There should be a feeling of accomplishment.

However, winning is always a result of “the market” agreeing with your trade. Be humble and thankful rather than boastful. Your mindset will be more business-like.

Winners also have a mindset of staying with their profitable trades longer.


A Winner but a Loser too

Loser: Traders will not always win. They will fail, and fail more often then at any time in their lives.

However, like winning, losing is because “the market” did not agree with what you thought would happen. It is not the traders fault. Traders who have a mindset of accept losses and accepting losses more quickly, will save trading capital and stay in the game longer.


An Anticipator of the future but with a Focus on the past and present too

Anticipator: Traders need to think about anticipating what may happen next by following the clues the market provides.

Traders who can anticipate a trend before, or while it is happening, will enjoy the most success.

See the future before it happens by anticipating.


An Anticipator of the future but with a Focus on the past and present too

Focus on the past and present: The past and present is where the traders vision is the best. It gives traders the ability to define and limit risk. The anticipated reward will come if “the market” agrees.

It is easier to see the past and present. Focus on it and let the anticipated future take care of itself.


A Devoted Lover but a Swinging Bachelor too

Devoted Lover: Trading Trends require being a Devoted Lover to the position. Without loving the position, the trade will likely be closed before the trend is complete.

Traders who focus on trending markets and being a devoted lover to the position, catch more trends and stay on more trends. Trends are where the most money is made in trading.


A Devoted Lover but a Swinging Bachelor too

Swinging Bachelor: There are markets that require “falling in like” with the trade rather than “falling in love” with it.

During this type of market, the trader swings from the long and the short side because the market is more non-trending.

Traders who think about the type of market – trending or non-trending – can more clearly understand whether to love or like their position.


A Fear Conqueror but a Greedy Bastard too

A Fear Conqueror: Traders must conquer Fear. Fear is a traders worst enemy. It will make traders do things that they normally would not do.

Traders who strive to conquer fear in a proactive way, think more clearly during trades, are more disciplined, and are in a position to trade more trends.


A Fear Conqueror but a Greedy Bastard too

A Greedy Bastard: Bulls and Bears make money but Pigs get slaughtered. Right? WRONG!

If you take this attitude you will never stay on a trend and have your account balance get big and fat

Traders who have good trade location, need to be a Greedy and Selfish Bastard at times. Doing so leads could lead to larger trending profits. Trends are where the most money is made by traders. WARNING: Don’t be greedy with a losing position/trade . Only winners.


A Risk Taker but a Risk Avoider too

A Risk Taker: Traders have to be able to take on risk. However, risk should have it’s limits.

Traders who focus on Defining Risk and Limiting Risk, are smart Risk Takers who are managing their businesses bottom line.

Trading Losses are expenses to a forex trader’s business. If risk is not defined and limited, the losses/expenses can be unlimited. Remember this mindset.


A Risk Taker but a Risk Avoider too

A Risk Avoider: Market Risk, Event Risk and Liquidity Risk are the three main risk ingredients. Market Risk is always prevalent in the forex market. Event Risk and Liquidity Risk can be avoided most times.

Traders should look to avoid instances where Event and Liquidity risk is too great.

Traders should also consider not trading when markets are choppy and not trading “normally”. There will always be another trade where risk is less.


Growth Mindset of a Forex Trader

• Disciplined but Aggressive too• A Loner but a Crowd Follower too• A Winner but a Failure too• An Anticipator of the future but with a Focus on



Twitter: gregmikefxDaily at www.livestream.com/fxdd Thank you!

http://www.livestream.com/fxdd

greg michalowski copyright 2013 “having the mindset of a forex trader” fxstreet webinar...

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