How’s Your Attitude towards Money Out Of 10?

How’s Your Attitude towards Money

Imagine, with me for just one second, a boy or girl who grew up in a family where there wasn’t any more to spare month to month. Even worse, they couldn’t even get by, let alone have anything to spare, since their parents weren’t wealthy and didn’t have high-paying jobs but rather were considered part of the lowest income earners in society.

It obviously meant the kids couldn’t get birthday gifts or go on vacation like other kids in their schools because resources were LIMITED!

Every time they asked for anything, no matter how important it was. The children’s parents would always say to the children,  “we don’t have that kind of money,” “money doesn’t grow on trees,” “do you think I am a bank? Where must I get that from?” or “all those things won’t make you happy” almost as if to say it was wrong to have these things, let alone even want them.

Even with the circumstances faced, outcomes may differ for each child who has grown up in that environment. You get the one child who may have a positive attitude and center themselves around a positive framework for the future. While on the other hand, you may have a child who has an entirely negative attitude towards it and thinks negatively about the circumstances.

Does it make that child bad? No. not at all; it just means the one may be a driver towards positive behaviors and the other to negative behaviors.

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What does this mean?

Studies showed that the children with negative behaviors got angry quicker, fought back most of the time, suggested addictive behavior and restrictive personal growth. Looking at this, we may realize similarities, or you may not. The behaviors in no way make you a lousy Forex trader or person; it simply gives a little background towards your attitudes that influence your behaviors.

The longer you allow them to control you without correction, the longer you stay in the mud. You may now wonder what any of this has to do with Forex trading. Simply everything, if I am to be honest with you. Yes! I said it, your attitude towards money outside of the markets contributes significantly to your attitude towards the same money, which you put on assignment, in the markets.

Where does I fit?

It has been interesting to dissect my attitude towards money in the markets because it’s not challenging, but we will dive into that a bit later. I noticed that my attitude towards money was unacceptable for a large part of my trading journey if I wanted to achieve something great in the Forex industry, and it needed a lot of work.

Now, was this due to my upbringing? Partially. I say this because I wasn’t necessarily taught everything about money. As a Forex trader, someone who deals with money every day, you have to check your attitude towards money.

How do you determine your attitude towards money?

I must point out that you can only determine your attitude by reverse-engineering the process. So we understand that our attitudes drive our behaviors which then drive our results or, in most cases, the lack thereof.

To reverse engineer the process, we need to do the following:

  • Look at our current results and whether or not we are happy with them or room for improvement.
  • Identify the behaviors which led to these results (these are also known as formed habits). These may include our goals for each trade, the risk parameters we have set, and overall WHETHER OR NOT WE STICKING TO THE PLAN??
  • Does your money have a purpose when you are trading it, or do you do it because trading the Forex market is “cool”?

 

It is essential to look out for these things and answer the critical questions. There is an enormous downside if you don’t, for example, going on and on in a never-ending circle blowing account after account and affecting your psychological state.

Self-awareness moments

If you realize that your attitude towards money is negative in the Forex market, you would need to look at your circle of influence, who are the people you hang around, how they perceive money, help you, or make the situation worse?

The last thing you need to do to combat the negative attitude towards money is perhaps change your dialogue and monologue about money in your personal life and your trading of the Forex markets. Try speaking and journaling positively about money, and after a few months, review your results again.

It is all a matter of unlearning the habits that do not serve us and relearning the patterns that will allow us to become the greatest traders one day. Sometimes the problem isn’t the strategy you trade, sometimes it is your attitude towards the money you trade in the Forex market.

Happy trading, my fellow Traders!

Have yourselves a great weekend!!

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Emmanuel Maphosa

Emmanuel Maphosa

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