“Don’t get set into one form, adapt it and build your own, and let it grow, be like water. Empty your mind, be formless, shapeless — like water. Now you put water in a cup, it becomes the cup; You put water into a bottle it becomes the bottle; You put it in a teapot it becomes the teapot. Now water can flow or it can crash. Be water, my friend.” (Bruce Lee – A Warriors Journey)
This quote, comes from deceased film star and martial arts expert Bruce Lee. When I first heard the quote back in the 1970s, I never really gave it much thought but after seeing it again recently, I can see this quote in a different light and even more so, having traded commodities and Forex for over 20 years. By the end of this essay, you will realize why the quote, if you understand it can lead you to success in life and success in Forex trading. Here we will look at the concept of achieving confidence and discipline, through self knowledge which will lead you to Forex trading success. Currency trading is simple in terms of method, always has been and always will be but: Forex Trading the Paradox: Anyone Can Learn to Win But Most Traders Lose The problem traders have is – achieving the mental discipline which is needed for success and while most traders, look for success via complex formulas, working hard and trying to beat the market with trading robots, all they really need to achieve success is – to simplify their trading method, make it flexible and obtain the self knowledge they need to trade with confidence, courage and discipline. Sounds easy? Well its not and this is the reason, the vast majority of Forex traders wipe themselves out and its a massive percentage – 95%. Chinese Philosophical Concepts and Forex Trading In terms of a philosophy for improving your Forex trading you will be surprised, what you can learn from Chinese Philosophy and Bruce Lee. While he was seen by most people as simply a martial arts expert, he actually read philosophy at Washington University, was well read, and a great thinker, on both life and self improvement techniques. The concept of self knowledge and its power is common in Chinese philosophy and in addition to Bruce Lee, we will look at two other well known philosophers – Sun Tzu the legendary general who never lost a battle and Lao Tzu, who is perhaps one of the famous of all great Chinese thinkers. Are You Serious? You may be thinking – can these people’s views and philosophies, really show me how to achieve Forex trading success? The answer is yes they can – Self knowledge is the key to success in Forex trading and in many areas of life which we will now explore in greater detail. Mindset – If You Want to Know the Secret of Success – Take a Look in the Mirror Mindset is the key to making Forex profits. You need to have self knowledge which will give you the confidence and discipline, to achieve trading success. Success comes from within you! All you need to do is unlock the potential of your inner self and success can be yours. The importance of mindset can be seen in the percentage of losers in Forex trading. 50 Years ago it was 95% of traders, today its still 95% and in a 100 years time the percentage will still be 95% of traders will lose. We have seen huge advances in technology in the last 50 years and no doubt, will see even more incredible advances in the next 50 years but that’s not going to increase the number of traders who win. The reason is simple traders are human and most will not make an effort to overcome the mental barrier which they need to do to win at Forex. Anyone can do it – its a choice but very few traders make the right choice. If you want to win you can choose to win and adopt the mindset of a winner.
Ancient Chinese Wisdom Will Lead You to Success. The concept of martial arts is the same as trading Forex, you need to adapt your skills to the situation you are confronted with and execute your skills with confidence, courage and discipline. Make no mistake, the Forex market is a formidable opponent which will constantly move in ways you don’t expect, wrong foot you and take your money. If you are not ready and able to adapt to the markets, it will surely kill you. Understanding the Battle and the Challenge The Forex market is made up of humans and is a brutal arena – Everyone is trying to make money and take it off everyone else and you have to have the right education and trading mindset, to survive. It’s a fact that most traders, underestimate how hard it is to make money in Forex trading. While the actual percentage of people who win is low, the paradox is: The tools you need to win can be learned by anyone. So if the tools are so easy to learn why don’t traders learn them and win? There are two reasons: The first is many traders see the Forex market as something that can predicted in advance (even though they should realize that humans can never be predicted) the majority of traders believe the myth that Forex markets either move to some higher force or to scientific formula’s and if you believe, you can predict Forex markets you will lose. Forex markets are not predictable but you can win if you learn how to trade the odds – Simple methods will work best in Forex trading but it is up to you to realize the systems potential and Make it win. When you trade Forex you are competing against other humans and while its a mass of millions and millions of people their still human and that means there driven mostly by the emotions of greed or fear. The market moves, where it wants, when it wants and you have no way of predicting what it will do but the good news is – while you can’t predict it with certainty, you can take advantage of high odds trades and make profits from it. The key is to have the self knowledge to use your trading tools in a flexible way to take profits from the market and to do this you must have the confidence and discipline to execute your plan. Its a battle you’re in and its a hard one to win but you can win it – with the right method and the right mindset.