What do Michael Jordan, Conor McGregor and Taylor Swift have in common?
If you answered “They all have Netflix documentaries.” Then you are right. You probably also have a lot of time on your hands.
Another thing they have in common is that they excel in their respective fields and look for ways to improve their craft.
They expose themselves to different environments to try different things to see what works best for them.
In other words, they deal with change positively.
Michael Jordan changed his playing style from relying on pure athleticism and explosiveness to having a great fadeaway shot to score points.
Conor McGregor's constant mixing of training styles has allowed him to easily change the pace and stance of his striking during his matches.
Last but not least, my favorite artist Taytay has shown tremendous growth as a singer and songwriter, continuously making waves in the music industry over the years instead of just resting on her laurels.
These elite artists owe much of their success to embracing change, and that is what we, as traders, should strive to do.
The problem that many traders face is actually… Not in making the changes needed, but in failing to follow through. This is what separates the “greats” from the “not-so-greats.”
Great people keep track of their changes and never stop training, while not-so-great people tend to get lazy and feel lax over time, and eventually fall back into old habits. As a result, the greats improve, but the not-so-greats don't grow.
but Accepting change is not easy. Even if a trader steps out of his comfort zone to try new methods and techniques, he may not have the perseverance to move forward if things get tough.
One mistake that Forex traders make when implementing changes to their trading style for the first time is to immediately focus on the results of the change. More specifically, they focus on trading profits and losses (what did we say about doing that, huh?).
The trader may initially see that the changes have generated profits. Naturally, the trader feels that the Forex system is profitable and immediately starts trading directly at the usual risk levels.
The problem with this is that the trader is not fully aware of all the effects that changes to the overall trading system and risk management plans may have.
This problem stems from a lack of experience – both in understanding new system parameters and how to deal with changes to the system.
Many Forex traders try new methods but lack the consistency and discipline to practice and obtain the information necessary to measure whether the results are meaningful or not.
They stop midway, often because they feel it's not worth the time, effort and/or pain to see if the changes can be profitable or not.
Ultimately, if a trader becomes mentally and financially exhausted by trying a new trading system or trading tool, it can be quite traumatic. Rather, this may lead to the trader refraining from exposing himself to change, thus hindering his growth as a trader.
A great way to implement change is to create a controlled atmosphere in which you can freely make mistakes. By doing this, you can accelerate your learning curve without the risk of permanently damaging your finances.
Two ways to do this are reviewing the charts and trading with a demo account.
Chart reviews
Although reviewing the charts lacks the feel of real-time forex trading since you are looking at everything in hindsight, it helps you see what you could have done during the day. Next time a similar setup appears, you'll know what to do.
It's a bit like watching a replay of your basketball game. You can see all the wrong and right things you did and adjust accordingly.
Demo trading
Demo trading is useful because it allows you to participate in the market in real time without putting your capital at risk.
You can make as many settings as you like, enabling you to accumulate weeks of trading experience in just one day. You can practice the trading system frequently or focus your attention on trading news reports.
By doing these two exercises, you are putting yourself in a controlled environment, giving yourself a training ground in which you can constantly practice, train, and test your skills without the pressure of losing your hard-earned money.
We hope this helps you follow and fully embrace change, allowing you to grow as a trader.
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