It is an exciting feeling when you start trading. A lot of traders are filled with an internal desire to find some secret, big or small, that will give them the perfect edge in the markets, allowing them to fulfill their fiscal dreams. It is easy to get too focused on this quest of becoming the perfect trader; which is why caution is needed. The drive for perfection can create a disconnect between a trader and the markets, resulting in fear, frustration, and possibly even financial difficulties in their trading journey.
Here are 3 reasons to avoid trying to be the "perfect" trader:
Fear of Failure
To have a fear of failure is normal for most traders. Often, to be perfect is seen as to become free of faults. Believe us when we say that there is no flawless trading strategy. A trader searching for a flawless strategy will be sunk in either 2 ways: 1) the trader will never enter the market or gain any experience because they don’t want to risk losing, or 2) they will waste countless opportunities developing an over optimized trading strategy that will be useless as soon as market conditions change.
Losses are going to happen when you are trading; rather than trying to avoid them, learn to manage them. It is okay to lose a trade as long as you don’t lose the lesson behind the loss.
The Need to Control
Just as a surfer does not direct the waves in an ocean, reality can hit a trader hard when they realize they don’t control the Forex markets. When a trader becomes too focused on trying to control the markets actions, and consequently the outcome of their trade, they let go of their most important control - the trade itself.
As the trader, you decide when you enter the market, when not to, where to place your entry or an exit, what you trade, etc. Don’t trade the control you do have for an illusion; rather, you can learn to use the markets movements just as a surfer learns to ride the waves of the ocean.
Never Satisfied, Missing the Journey
One defining feature of a Forex trader is their ability to aim high; they have big dreams and then work to get there. However, a defining trait of a perfectionist is their focus on their destination rather than the journey. Why is this so dangerous for a Forex trader? There is no final destination for a trader. Sure, there are goals to work towards and destinations that trading can help you reach, but after you finish one trade it is time to move on to the next. A trader who is only focused on their destination will lose their enjoyment of the journey--and wasn’t it your passion for Forex trading that got you started in the first place?
What you do want to strive for is to be a growing trader. A trader who is focused on growth will find they experience less fear, are able to learn more from the markets, hold on to their passion and enjoyment of trading, and can expect to find more financial success.