Most trading psychology articles focus on reducing weaknesses rather than identifying and improving strengths.
This is probably because there is a common idea that when you address your weaknesses you automatically improve your trading performance, but this is not always the case.
This time, let's focus on a different approach by building your strengths first so you can overcome your shortcomings.
Before we get ahead of ourselves, what exactly are strengths and why is it important to identify them?
Simply put, strength is something you're good at. But unless you apply that specific strength to a productive outcome, you may not be able to recognize it or you may see it as a weakness.
So how do you identify your trading strengths? Here are some steps that may help:
1. Review your trading diary
If you read my trading psychology blog regularly, you will know that I often stress the importance of keeping a detailed trading journal.
So use them well! Review your trading records and identify instances where you think you performed well.
Identify your ten most profitable trades and note the following:
- What pairs have you traded? Did you stick to your trading plan?
- Did you base it solely on techniques or fundamentals, or was it a combination of both?
- How long have you been holding on to your trades?
Aside from asking yourself these questions, identify other common factors that helped you win these deals.
2. List your strengths as a trader
I know it can be a daunting task, but famous trading psychologist Brett Steinbarger has come up with an idea on how to do it.
Let's use the VIA Survey created by the VIA Personality Institute to help people evaluate their strengths. Try to identify your top five:
Creativity, curiosity, openness, love of learning, wisdom, courage, perseverance, integrity, vitality, love, kindness, social intelligence, citizenship, justice, leadership, forgiveness, humility, wisdom, self-control, appreciation of beauty, gratitude. Optimism, humor, spirituality
Finished? Now what I want you to do is think specific Ways how you can benefit from them in your daily trading.
For example, I ranked a love of learning as my greatest strength. I think I can benefit from this more by studying different systems and reading more books about forex trading.
3. Ask for the opinions of others
Although self-reflection is helpful, we may overlook some traits that others can easily recognize in us. So take the time to ask for an outside opinion.
Ask your colleagues, your trading manager or coach, and friends what traits you possess that make you a good trader.
Collect their input and compare it to your own list. You may be surprised to see how others view you.
Just like identifying your weaknesses, it's equally important to know what you're good at, regardless of whether you're on a losing streak or looking to level up.
Are you looking for your own place to record your market observations and trading statistics? If so, check out TRADEZELLA! It's easy to use
A blogging tool that can lead to valuable insights about performance and strategy! You can easily add your thoughts, plans and track your psychological state with each trade. Click here to see if this is right for you!Disclaimer: Babypips.com earns a commission from any signups through our affiliate link. When you subscribe using our affiliate links, it helps us maintain and improve our content, much of which is free and available to everyone – including Pipsology School! We appreciate your support and hope you find our content and services useful. Thank you!
