A lot of traders struggle with mindset even though the forex market is huge. So I want to talk about having an abundance mindset when you trade.
An abundance mindset is the belief that there is enough wealth, happiness and success in the world for everyone. In trading it comes down to three things: perspective, generosity and positivity.
Key takeaways
The forex market trades over $7.5 trillion a day, so the idea of limited opportunity does not hold up.
When you understand the size of the market, missing one trade is not something to be upset about.
Take what the market gives you and exit at your target instead of holding out of greed.
When a trade is wrong, give the money to the market, review it and come back, do not move your stop.
Generosity comes before wealth, so practice giving now, even a small amount to charity.
Treat every loss as a signal to improve and do not blame the market or the broker.
Perspective: the market is close to unlimited
The forex market has over 7.5 trillion dollars traded on a daily basis. To put that in context, the wealthiest man in the world is worth about 250 billion, a quarter of a trillion. The market is roughly seven times that, in a single day.
About a decade ago it was around 3 trillion a day. It has more than doubled since then, so the money is only increasing.
So thinking there are limited opportunities, and getting upset when you miss a trade, is a mistake. You have a phone or some device, which means you have the capacity to ride with the market. It is up to you to take that ride.
“7.5 trillion in one day is essentially unlimited. To think opportunities are limited is definitely a mistake.”
Generosity: give the market its due
You cannot have an abundance mindset without generosity, and that applies to trading. When a trade hits take profit and you refuse to exit because you want a little more, that is greed, the opposite of generosity.
Take what the market has given you, that is enough, and do it again tomorrow. The market has limitless opportunity.
The same goes for losses. When a trade goes against you and you refuse to accept it, moving your stop further so it does not close, that is the opposite of generosity too. Give your money to the market, review the mistake as an opportunity and come back.
Feel wealthy before you become wealthy
In life in general, be generous. Do not wait until you are wealthy to start. You need to feel wealthy first and then become wealthy.
This is not just from me. Famous athletes and successful people talk about it, and Conor McGregor has a whole interview about how this works.
A friend of mine used to tell me to donate to charity even a very small amount, purely to practice being generous. You take action towards it, you get comfortable with it, and you notice you do not lose anything. The more you put in, the more you get out.
Positivity: find the good in every loss
Positivity is the last piece. Some people say you should just be honest and admit when things are negative. I disagree. There is a positive aspect in every single situation.
In trading, when you make a loss, that is a signal that there is something to improve. Be happy about that, it is an improvement opportunity.
The other thing is complaining, which works against positivity. When you lose, do not blame the market or the broker, just accept it. Marcus Aurelius, the Roman emperor, said not to catch yourself complaining even to yourself. There is a lot of wisdom in that.
With the right mindset in place, compare prop firms on Propvator and pick one to trade the market with.