Forex trading is not just about earning money. It actually comes with a lot of other benefits which have got nothing to do with money. A decade of trading experience can teach you a lot of things and give you many valuable life lessons. Forex trading mimics real life in many ways. Just like trading, your life comes with a lot of challenges and risks. You have to have good discipline, make a lot of effort and be patient to succeed in both real life and in trading. So, let us see some of the important life lessons that you can learn from Forex trading.
1. Emotional management
In real life, emotional stress and pain can be very devastating to a person’s general well being. We face a lot of situations when emotions take over our thinking and influence our behavior. In life, you go through a lot of failures and disappointments just like you do in Forex trading. So obviously, many years of Forex trading improves your emotional management. A new Forex trader starts trading with a lot of doubts and fears; he experiences too much pain during losses and a lot of euphoria on success. But over time, a traders’ ability to manage his emotions improves and his overall emotional intelligence gets better. So, undoubtedly, emotional management is one of the valuable life lessons that you can learn from Forex trading.
2. A positive take on failures
We often hear that failures are stepping stones for success. But in real life, we don’t see failures in a positive way. First, failure hurts your self-image and makes you feel that you are not meeting your standards. Second, failure causes a lot of disappointment. But one of the keys to success in trading is taking failures in a positive way. Trading helps you to see failures as opportunities to learn. Because in trading, it is usual to see your predictions go wrong and face losses. Seeing a lot of losses eventually, make you accept them and make use of them in a positive way. Thus, a positive take on failures is another one of the important life lessons you can learn from forex trading.
Another one of the life lessons that you can learn from Forex trading is discipline. Discipline is nothing but regulating your behavior with a particular system of governance. To succeed in any field, you need to manage your time effectively, set up a time table for your tasks and be regular in following them. Likewise, trading also demands a lot of self-discipline. You need to set proper goals, manage a trading journal and do what needs to be done on a regular basis. More importantly, you have to be free from laziness, lethargy and low self-confidence. Since trading works in all these areas, it also helps to develop the discipline necessary for success in real life.
4. Leaving the comfort zone
Trading psychologist, Dr. Brett Steenbarger says, “Your growth always lies on the other side of your discomfort. Whether it’s in the weight room or career decisions, you’ll never develop yourself by staying in your comfort zone.” A comfort zone is a psychological state where our uncertainty, scarcity, and vulnerability are minimized. Staying in a comfort zone is easy and comfortable, but it hinders your growth. Moving out of your comfort zone takes a lot of courage and Forex gives you that. Forex is all about trading with uncertainty. So, leaving the comfort zone is one of the crucial life lessons you can learn from Forex trading.
5. Awareness of Global Economic events
Forex trading requires collecting a lot of data. You have to not only observe the price action in the currency charts but also be aware of what economic events are happening at the global level. Important economic reports and news releases such as GDP, NFP, unemployment rate, etc affect the economy and influence the price of the currency pairs. To succeed in Forex, you must pay close attention to such news releases and understand how it will affect the market. Such constant exposure to global economic events increases your knowledge of the economy. You become deeply aware of social and economic issues because of trading. Forex trading encourages you to stay informed on current events and observe how they impact the way of your life.