A SUCCESSFUL FOREX TRADER’S CONSTITUTION – PART 2
This is PART 2 of a “A Successful Forex Trader’s Constitution”, if you haven’t read Part 1 yet then please do so by clicking here: A SUCCESSFUL FOREX TRADER’S CONSTITUTION – Part 1
This article will spell out a way to construct your own personal Constitution, one which can guide you in your daily life and as a trader.
Imagine you are driving along one day and you pass a church with many cars parked outside. Out of curiosity you pull in. With a strange feeling of apprehension and anticipation you enter and walk down the aisle. You look to the left and to the right and notice that the pews are filled with your friends and your family and your colleagues from work. This is strange you think. You walk on towards the casket in front of you. To your astonishment the body lying there is YOU. You are at your own funeral. And make no mistake, you will not get out of this world alive. Most people know this even if they don’t believe it! In shock, you take a seat.
Suddenly, five people come forward – and hopefully you will have at least five people at your funeral – one after the other, to deliver their eulogies on you the deceased. They are:
1. your intimate partner or lover
2. one of your children
3. a very close friend
4. someone from your community
5. someone from work / office.
Imagine what these five people will say about you and about how you conducted your life. Will they say “This guy was amazing. He was a devoted and compassionate man who confronted his childhood issues and resolved them. He worked hard at all his relationships – with his wife, his children and his friends. In spite of his successful career, he made time for those around him. He kept mentally and physically fit. As a trader he was a true professional with incredible knowledge, incredible discipline and incredible abilities. He strived towards success with conviction and dedication. He continued to learn until the day he died. I have never seen anybody manage a crisis as he did, when the chips were down. Those times were often his finest hours”.
Or will they say, “This guy was all over the place. His life was chaos. He neglected those who loved him. He had the best intentions but never managed anything he set out to do. He lied to himself and he lied to others. He had little integrity. He did not believe in himself even though he had so much going for him. He tried to be a successful trader but he couldn’t keep to the simplest rules to save his life. This guy changed his mind like the weather. He gambled away his money and his life and the lives of those around him”.
What would these people say about you as a person and as a trader?
For a human being just trying to live in this world, and for a trader, if you really want to create your own Constitution, you take these five people that are going to speak at your funeral about who you are and who you truly were. The great thing about doing this exercise going forward in time is that you have the chance to bring about those changes before it is too late.
Write down those things that your partner, family members, friends etc will say about you.. Write down the things you would want them to say about you.
Perhaps it will go like this. ‘He is very open-minded. He is so determined that the world steps aside for a person that knows where he is going. He is so focused and ambitious, he is so hard-working, he is such a high achiever. He has such energy, I don’t know where he gets it from. He is objective, proactive, organised and strategic in his thinking. He’s very goal-oriented. He’s committed to where he is going. He is disciplined, self-confident, motivated and optimistic. There isn’t a pessimistic bone in his body and at the same time he’s patient, he’s intuitive, he knows the things he shouldn’t be impatient with, he’s honest and integral which are his greatest strengths because people can trust him’. Would they be able to say all these things about you? Would your onlookers be able to say ‘he really enjoyed taking risks and more importantly he knew how to manage those risks and to manage his stress because when everything was turning sour, that man was in total control. He didn’t necessarily try to work his way out of it so much as work his way through it?’
So now you have written down what you want your friends to say, write down what your worst critics would say about your work performance. Write down what your worst enemy would say about you. For example, if they believe you did them wrong. What would they say at your funeral? Now your Constitution gets to be very interesting! The reality is, everyone will have a slight variation in their eulogies but when it comes to creating your trader’s Constitution and solid foundation, you want to be crystal clear in what you believe in and in what you stand for. You need to have a crystal clear understanding of your personal foundation as a human being, of your character and what you are trying to build. Then it is only of value if you are willing to fight to protect your Constitution. Now it becomes time for you to walk the talk. Take your energies and begin to create a list of traits and characteristics that you think everyone will say about you and begin to write down your Constitution.
Creating your Constitution
Creating a Constitution is very simple and needs to be pure. A trader’s constitution is figured out through persistence and the foundation is laid with our character. So the question is, what kind of character do you really have? When you are clear about what you believe in, our courage takes over, allowing us to walk the talk. It is our courage that allows us to step up to the baseball plate of life and demand that we get to first base. It is our Constitution that allows us to place trades with confidence. It is our Constitution that allows us to step up to that trader’s plate and demand that we call trades for success and which allows us to progress from one trade to the next like a successful baseball player who gets to first base, then to second, then to third. It is the baseball player’s commitment to consistency and excellence to his profession that gets him home. Living with a Constitution allows us to go through all the necessary steps which enable us to become successful in this life. It allows us to be constitutionally based and not feeling based.
We go from managing our poverty, which is basically doing what we feel like doing and saying what we feeling like saying, to managing our mediocrity, which is now beginning to harness what we feel like doing and saying, to now managing our success, which is all about controlling our thoughts, actions and words. Feeling-based people are constantly looking over their shoulder, living a life of fear. The fear of getting caught, of exposure, of poverty. Fear imprisons, but a Constitution liberates. Fear paralyzes but a Constitution empowers. Fear disheartens, sickens and causes us to be useless whereas a Constitution encourages and makes us useful.
Write down your Constitution and place it on your trading table. Read it every day. What you want them to say about you forces you to start to perform in a certain way right now.
It might go like this..
I am a proficient, disciplined and profitable trader. I enjoy trading to make a profit. I honor the responsibility I have to myself and to those who are watching and depending on me to be such a trader. I continue to educate myself on how the markets work and I also continue to educate myself on how the mind works so that I incur the necessary discipline to execute the right actions for my success. I know how to determine market direction and I have a simple trading methodology that has an entry and two exit strategies, one for profit, one for loss. My trading methodology feels comfortable to me, is easy to understand, obey and execute. I have a set of trading rules that make sense to me and I obey those trading rules. I always trade with a protective stop. When i find a trade, I create that trade and trade my plan. If my currency of choice does not fit my trading methodology, I look for another trade in another currency. If I cannot find a trade, I am patient until the market meets my criteria. Each trade either wins me money or experience.
Thus your Constitution is simply based on three things:
1. learning market direction
2. having an entry strategy and
3. having two exit strategies
These three simple steps are figured out through persistence. Persistence allows us to get back on track when we hit a detour. It allows us to revaluate and readjust our way of thinking as we re-approach the market. There are traders who persisted until they succeeded and there are traders who gave up when they were so close to success. For those who persisted, they did so because they finally figured it out.
Take the example of a pianist who plays beautifully at a concert. You are spellbound. After the show you approach him and call him a genius. He says ‘no I am no master. I am persistent’. He paid the price he had to pay to learn. He practiced for thousands of hours to become successful. He never gave up even when he hit a mental block. He broke through it to move to the next level.
The greatest gift is the belief that there is a greater purpose to our lives. Those around us who are dear to us would rather see a sermon than hear a sermon. They would rather see an increase in your account than hear how great a trader you are. Most of us pretty much know what we want to do, want to be and what we want out of life. Yet we have a hard time getting there because we don’t know where to begin. The safest and best place to begin, to make money in life and in this market, is to create your trader’s Constitution. The surest way to make no money in this market is to create destructive negative habits that you do nothing about. I pose a couple of questions. Is it the market we are out to change or are we trying to change our perception of how we see it? Are we trying to change the market or are we trying to change ourselves? Is it the market we are trying to conquer or are we trying to conquer our own disciplines and emotions? If you focus on the latter, you will succeed.
Trader, it is your choice. You can be who you want to be. If others can do it, you can too.
43 Comments Leave a Comment
Very mateviruyushchy article! Thank you very much!
Super article! Thanks!
Good fellow Mr. Nial! I admire your articles. THANK YOU FOR huge motivation!
thank you very much, you just gave me carriage to go ahead wit this plan i have thought about, now ama test it patiently and strategically!!!
“The greatest gift is the belief that there is a greater purpose to our lives.”
When trading meet spirituality…
It’s one of your most beautiful articles that you ever wrote, cause it’s goes beyond trading – there is deep life principles behind these words
Straight GENIUS! Thanks a lot Nial!
this is my very first comment on your website…
‘thank youu… i owe you a lot!’
i got a really mixed feeling, i regret it…that it took me a while before i pay more attention to your lesson. But i’m also happy,since you have incredibly encouraged me.
You convinced me…that i have reason…though some people might say i have delusion or being stubborn
you bring back my confidence
i have not too much words about what to say, just that you are teaching us so much and not only about trade. i am deeply grate full. thanks a lot
hmm… talk of a philosopher trader or a trader philosopher? you are excellent at what you do!
I wish I had found your site earlter, I wouldnt have been where I am tody. Thank you very very much
Another great article. One that I will definitely take action on. Thank you.
thanks nial,i really got this artile at the right time i need it.it not just trade but personal things i am going through as a person who wants to do the right thing to achieve success in life.i feel like crying when am reading this constitutional part,it really touch my soul.God bless you real good.i hope to meet you one day.
Great article! Much needed in my opinion as most people like myself have the desire to better ourselves but lack the conviction, this certainly instills that conviction to harness the power within all of us to change our views and actions in all that we do in life.
Thanks for this piece and look forward to more words of wisdom!
Thank you Mr. Fuller
You are not only a forex trading coach but also
a life coach.Writing down a constitution and being
commited to it makes a successful person out of us
in all aspects of our lives.
the most usefull advice i think ive read all year…keep it going..ex stuff.
Nial, Absolutely well said. This has gotten me to think yet again. You are a wise individual and incredibly kind to share your thoughts and wisdom with all of us trying to learn. Thanks and I do look forward to taking your course. I have gotten the Currency Trading for Dummiies book that you recomended and it has been helping. Thanks and may God continue to bless you as you are a blessing.
that’s really true…”if others can do it,you can do it”.
Have been away, back again. This article is brilliant but I believe that trading is 99% or more in the mind. To learn the strategy is just like learning to drive. If you don’t follow the rules you crash. There can never be enough of this constitution as this is the part all traders must master to become a master trader. There are good drivers and bad drivers
Thank you for your seemingly undyinglove for all of humanity.
Thanks Nial. Your integrity shines through your writing.
Excellent article. Very impressive and enlightening.
Hi Nial, this is a great and timely article, since I am just beginning to toss my hat into the Forex market. These are excellent tips to follow as I build my trading constitution and trading plan. Thanks for all you do.
Fantastic article Nial which makes sence, the frustration one feels with the market is not caused by the market itself which perceptivly seems to be the source. The frustration lies with ourselves and our lack of knowledge/skill/discipline at this moment in time. When the frustration dissapears and success comes one has mastered “self”. And mastery will only come from hard work, dedication and commitment to succeed.
your timming is excellent ! great article, great motivation.
A blueprint for life can be essential; life will give us one or we can create our own. Normally it is a combination and hopefully we lean toward creating our own blueprint as much as possible. Good article.
You have written a great article!! Thanks!!
I have enjoyed and benefitted from your article greatly.
Keep up the good work!
Nial, thanks for the inspiration. Hope to see more articles from you and may all the pips be with you.
I agree with Terrys sentiment,”Your youth belies your life’s
wisdom”. These articles are great and they will serve to strengthen my resolve to do whatever it takes to become a successful trader.
I don’t even know what to say here. These two articles are a foundation for all traders to build on. The Constitution must be laid down first. Ambition, energy, discipline, humility, organization, self-control,patience, will all flow from those with a strong constitution. I must lay this foundation.
Hi Nial,the advice in your article is excellent.It not only pertains to forex trading,but this constitution is a great way to make positive changes to your life to help you gain the necessary discipline to achieve success as a forex trader and in your personal life.This article has been extremely useful to me.Thanks for a great article.
Nial: What can I say? Your youth belies your life’s wisdom.
I, at 58 years, am just beginning to understand the things you have mastered. Again I say “Well Done”.
I never considered writing down a “Constitution”, for my trading, or my life, yet I will now. After the way you have explained it, it only makes sense.
I hope that one day before I leave this world, our paths may cross, and I get the chance to speak with you in person.
yeh! nial… good article, we need plenty of this stuff, keep our minds focused on holding the line, and not dropping off by the wayside..
I was just thinking you are getting quite good at writing this stuff, maybe you should start thinking about writing a book or two, I mean what better way to spread the word, and who knows you might end up creating one hell of a best seller on forex, I mean the key here is to make interesting
Reading wile you express yourself and people are always looking for something new, especially in forex, and I think something like price action could be a big hit in book format, especially if you give it a hot title something like ( PRICE ACTION THE POWER TO MAKE MONEY).
Good stuff mate, keep up the good work..
This article is truly inspirational.I am going to print it out and laminate it. The personal constitution part alone is so worth doing. The trading part in which you say is based on three simple things- is so simple – its brilliant!
A great article for those wishing to improve their trading and live in general.
It certainly got me thinking and hope it has others too.
This is very good and very useful. I have been there – trying to change the market and blaming everyone else for my losses. Things are now different since I developed a constitution.
Keep up the good work. You are helping thousands of newbies and struggling traders.
Nial, I am extremely impressed! Heck of an article!!
Thank you sincerely.
WOW, this was exactly what I needed to hear. Thank you so much for taking the time to write this and reminding me of some principles I forgot.
This, along with part 1, are great pieces. I’m astonished actually because I have been thinking the last week or so that I need to “collect myself”, not just in regards to trading, but in regard to life in general. Things have been reaching the boiling point, so to speak.
Sometimes all it takes is some unexpected words of encouragement that “show you the light” to have a profound impact on the momentum of your life at any given time. Your article(s) today were unexpected and have had a significant impact on my mindset as I sit here and read them. Thank you for taking the time to author these pieces. Know that you have made an impact on at least one persons life.
I have been following you for a little while, with a fair degree of confidence. After today, and these articles, I am happy to say that I have full confidence in you and your ability to trade the market. I also have confidence that if I stick with you and your teachings I will be able to not only better my trading and atain my goals, but will also be able to better myself as a person.
Keep up the hard work; your efforts are greatly appreciated.
W0W! That was awesome. I needed to hear an inspiring article like that, cause I’m in that position, tryn to change my life and become successful!
hey man… the article i think it’s one of the most important article u could write.
To me, trading is a business discipline with a 90% of psicology and a 10% of good tecnics.
This trading week just finished has been a no good week of trading… many signals were failed and i went straight to my stops.
Trading is this too.
we keep doing it simple and we know how to do it so we never give it up.
Arduino from Italy
muchas gracias por este mensaje,de verdad muy util
very encouraging, nial. thanks and have a nice weekend. you deserve it my friend…
Thank you Nial for sharing this. I really appreciate the article. We need continued feedback on what is expected to become successfull.
Thanks again for your time. Larry