Become a better forex trader through effective personal analysis04 November, 2018 by Paula Rodriguez in Forex Lifestyle
Conduct a personal analysis to become a better forex trader. Applying personal analysis is a great way to review current abilities and develop action plans for optimization. Being a personal endeavor, forex trading requires self-management and self-confidence especially with the risks involved. Whether you are a full-time or part-time trader, it is essential to continue to evaluate your performance and career expertise. To achieve a successful trading career, take advantage of doing a self-analysis on a regular basis.
When trading forex, improve current capabilities and manage the direction of your career through personal analysis.
Importance of self-analysis when trading forex
Personal analysis is an excellent way to find opportunities for career growth and prepare for future trading activities. It can also enhance innate abilities and help focus on areas that require more improvement. When you find the time to look at your individual performance, you are taking extra steps to ensure successful trades.
Here are the top 5 benefits of conducting a personal analysis for your trading career:
- Strengthens self-development for career growth and increased emotional intelligence
- Encourages a healthy and more structured way to address weaknesses
- Promotes action planning to reach target goals or planned goals
- Maximizes innate strengths while realizing ways to build new skill or mindsets
- Helps traders gain insight of current level of expertise and how to properly manage the next step
Personal analysis via SWOT
What is a SWOT?
A SWOT analysis is a key activity for personal development. Applied mostly for businesses or company setups, a SWOT is a highly effective and reliable method that has helped organizations gain insight and reach growth. In a forex trading career, a SWOT analysis is a great way to put more structure into realizations, ideas and systems for trades. With an active trading environment, it acts as a great tool for self-assessment and strategic planning.
A SWOT allows you to identify and work on Strengths, Weakness, Opportunities and Threats in your current forex trading career. With the use of a SWOT, traders are able to see personal strengths as well as shortcomings when trading. It also encourages traders to take advantage of external opportunities and prepare for threats. When a SWOT is done regularly, the gathering of vital information can help traders manage career direction and execute the right plan of action.
To start a SWOT analysis, it is important to determine your current:
Personal strengths are important when finding your edge or capabilities as a forex trader. With a challenging forex market, using natural abilities can initially help you in your trades and provide a boost in self-confidence. Identifying your learned trading skills are also key in a SWOT analysis. When you gather your current capabilities or strengths, you are creating a starting point on how to approach your weaknesses or possible risks.
- What are your natural abilities? Are you using them in your current trading strategy?
- What are the skills that you have developed for forex trading? Do you have a good grasp on the techniques?
- What are the current tools you can use to optimize your trading system? Are you making the most out of all your available resources?
Recognizing your weakness can pave the way for growth. By pointing out your shortcomings, you can think about how you can use your strengths and how to fight any threats. At this point, it is important to be more realistic and positive about the areas where you need to improve. Instead of taking it with negativity, you must look at your weaknesses as a chance to optimize.
- From your trading journal, what kind of trades do you have difficulties with?
- Do you think you have negative habits or mindsets that are stopping you from achieving your goals?
- What areas in trading do you feel needs more attention? Are you confident in your forex education?
There are many opportunities in the forex market. With many possibilities for profit or enhancement, self-analysis can help you see what other things you can do to make the most out of your trading career. Whether this is an opportunity for a better strategy or recent access to trading tools, there are many ways to find success when trading:
- With your current strengths, are there areas of your trading expertise that you can use to gain more profit from the forex market?
- Are there any new technologies out there that you can apply to strengthen your trading system?
- Are there pairs or possible trends that you can explore? While considering your weaknesses, are you ready to grasp these opportunities?
According to A Conscious Rethink, there are obstacles or challenges you will need to face when building career growth. These threats are those that can hinder you from progress or from taking action. For a successful forex trading journey, establishing the threats to your strategy or trading career can help you prepare and anticipate possible scenarios. By taking advantage of your strengths and considering your weaknesses, make sure you find ways to become a better trader despite the circumstances.
- Based on your current trades, are there any external issues that are preventing you from reaching your goals? Are your daily tasks affected by your weaknesses?
- Is your current mindset stopping you from improving? Are your habits having a negative effect on the way you execute your strategy?
- Is there any trading tool that is not working properly? Do you notice any difficulties in your trading system that affects productivity or executions?
How to apply a SWOT
A SWOT analysis is a powerful method that can help traders realize individual strengths while inspiring further growth and strategizing. This framework can promote constant self-evaluation that will lead to forward thinking and better career management. Whether you do this at the beginning of your trading efforts or annually, the habit of doing a SWOT is an effective and highly organized way to achieve personal analysis.
DG Speaks shares that before taking on a goal, you must be ready with a game plan and everything else you need to reach success. With the great benefits of self-analysis, the process must be done correctly with an open and proactive frame of mind.
To successfully initiate a SWOT analysis, learn the important steps you need to take:
Establish realistic and measurable goals for forex trading along with a desired timeline.
With a SWOT template, list down your strengths, weaknesses, opportunities and threats.
Analyze your findings based on your goals.
Create an action plan and schedule a period where you can go back and check on your progress.
Make a healthy habit out of doing a SWOT and ensure you achieve growth.
Other great ways to conduct personal analysis
In both professional and personal endeavours, the ultimate goal is to attain a continued level of growth for quality performance. – How to Achieve Personal Excellence as a Forex Trader
A SWOT analysis is a well-known and powerful tool for growth. But aside from the SWOT method, there many other ways you can practice personal analysis as a trader. With these other techniques, you can make time to apply them daily, during your spare time or along with your SWOT. To reflect on your current capabilities and build better self-awareness, get to know the other ways to easily apply and promote personal analysis when trading:
- Determine and strengthen your emotional intelligence.
- Become aware of your reactions and mindsets in different scenarios.
- Study and track your skill level through a trading journal
- Practice overall mindfulness in professional and personal situations.
- Apply and build personal accountability especially during setbacks.
- Constantly assess your abilities and strategies with a demo account.
- Get to know the activities you excel in and find ways to use this when trading.
- Try to apply the 5 Whys when analysing challenges.
- Learn about your personality traits and take advantage of them.
- Create an environment for analysis through apps or exercises that promote reflection.
Personal analysis for forex trading success
Going through personal analysis can lead to many advantages as a forex trader. To achieve your career goals, you will need to map out where you are and what you need to do. Eventually, this way of thinking can increase self-knowledge, optimize forex trading performance and boost personal efficiency.
Strengthen your current abilities and grasp the opportunities of the forex market through personal analysis. To plan a successful forex trading career, you must include personal development as part of your trading strategy. Constant self-analysis can bring awareness to a trader’s current state of expertise and how to grow from there. It allows a focused review on how you are performing and how you are making use of your trading tools or skills.
With the chance to examine ways for optimization, personal analysis also serves as a tool to determine weaknesses or risks. It encourages traders to find new ways to improve abilities and pinpoint areas that require improvement. Whether you apply SWOT or the 5 Whys for personal analysis, you can create a trading career with a clear direction towards continuous growth and success.