Forgetting About Your Health
There is an assumption in successful trading that you need to work with 110% effort, every hour of every day. This, of course, is a complete myth. Although hard work is indeed required to become a millionaire, it is impossible to always be working at your best when you aren’t looking after your well being.
Overworking yourself, eating rubbish food and being completely inactive is a sure-fire way to burn yourself out – in turn, this will lead to poor performance in every area of your life. This is a bad strategy, as very few people achieve millionaire status overnight, instead, it takes years of consistent performance, which is made possible by taking care of your health.
Not Managing Your Time Properly
We all have the same 24 hours in the day – so why is it that some people are so much more successful than others?
Managing your time is crucial in becoming a successful trader. Finding smart ways to achieve better results without having to invest more timeis the key to getting the most out of your day.
For example, you may be able to learn about forex trading by reading endless blogs, watching endless YouTube videos and learning from your mistakes, but this route will take up a huge amount of your time. Instead, it can be a smart idea to work with a leading trading provider (like us) who delivers only the most important information and can mentor you, helping you avoid costly mistakes.
Being efficient with your time isn’t just about finding the best methods and resources. It is also about understanding the best time to do things. For example, if you wake up early, you may be able to get 2-3 hours of uninterrupted work time before others start to demand your attention. You could even save yourself hours every week by leaving for the office early to avoid rush hour traffic.
Ignoring Valuable Resources
When people achieve a little success, it is easy for them to assume they have learnt everything they need to know. But this is never really the case, there is always an opportunity to learn new things and accelerate your success. This is especially true in spaces such as forex trading, where strategies that used to work can become outdated.
Even billionaire investor Warren Buffet still reportedly dedicates 80% of his day to reading and learning new things.
It isn’t just specialist information and industry news that will help you become more successful. Expanding your mind and your interests can help you draw inspiration or spark creativity, which will often drive better results.
For example, although philosophy may not be directly applicable to forex trading, understanding the principles behind stoicism could help you stay calm during dips in the market, increasing the chances of your long-term success.
Focusing on One Income
Some statistics suggest that on average millionaires have at least 7 income streams. Relying on one income not only limits your ability to earn but can also increase your risk. This has become apparent during the recent pandemic, withsome people losing 100% of their income due to the various lockdowns and restrictions.
There are typically 7 categories of income streams you may explore:
- Earned income – such as a salary
- Business income – such as owning a business
- Interest income – such as lending your money in exchange for interest
- Dividend income – such as money paid to you when you own shares
- Rental income – such as money made by renting out a property
- Capital gains – such as money earned when you sell an investment for more than you purchased it for
- Royalties – such as money earned when someone pays to use something you own such as a brand or intellectual property
You may also choose to spread your risk within these streams. For example, you may own multiple businesses in different niches.
However successful you are at trading, if you spend all your profits on liabilities rather than assets then you are never likely to reach millionaire status.
Creating a budget will help you stay in control of your spending. Depending on your goals, it is not always a bad idea to allocate some budget to activities which you find enjoyable but aren’t necessarily going to increase your wealth, but following a budget will ensure that you do not overspend in these areas.
Ignoring the Bigger Picture
There are very few accidental millionaires in the world. Or at least there are very few millionaires who didn’t have a big vision for their wealth or business.
To become a millionaire, you need to have a clear idea of what you are working towards. Not only will this help maintain your motivation, but it will also ensure you don’t waste time moving in a direction that matters very little to your success.
Ignoring the Smaller Picture
Ignoring the finer details can be just as harmful as not having a clear idea of the bigger picture.
Just like small increases in profits can compound into huge future profits, small expenses over time can amount to big losses. This is especially true when you compare those losses to the opportunity cost if you had invested that money into generating a return.
For example, unused subscriptions to things like streaming services, gyms and magazines could be much better allocated to investments.
If you are the type of person who is always waiting for the ‘perfect’ time to start – you might be waiting forever. Whether it’s starting a business or starting forex trading, the best time to start was ten years ago and the second-best time to start is now!
Although it is always good to learn the basics before you begin, getting started will help you improve quickly by giving you hands-on experience and letting you learn from your mistakes.
Time in the game not only makes you a better trader but also gives you more time to take advantage of the power of compounding.
Surrounding Yourself with the Wrong People
How do the people around you make you feel? Are they supportive of your goals or do they dismiss what you are trying to achieve?
It isn’t always obvious to us, but who we surround ourselves with is crucial to our success. Although it isn’t always possible to surround yourself with millionaires, spending time with those who you can learn from and those who support your ambition is important to keep you motivated and on the road to becoming a millionaire.
Spending on Vices
We have already discussed how spending on non-essential liabilities will disrupt your route to becoming a millionaire. But spending on vices such as alcohol, drugs, gambling and junk food deserves a special section.
Not only are these vices bad for your budget, but they will also impact your mood and cloud your mind, making it more difficult to make clear decisions in your pursuit to become a millionaire.
We aren’t saying that enjoying a couple of glasses of wine or pints of beer is going to completely ruin your chances, but spending excessively on any vice is bad for your mind, your health and your wealth.
Wasting Time on Low-value Past Times
Spending time doing things like watching TV or playing video games can help you relax and benefit your mental health. However, unless you are a professional gamer or TV critic, spending excessive time doing either of these is going to harm your wealth.
Instead of spending hours streaming Netflix, invest time in reading books, taking online courses or watching educational videos online. If watching TV or playing games helps you relax, allocate specific time to this rather than letting them take over your day.
Being Scared of Risk
Unless you plan on inheriting millions from your family, you will never become a millionaire without taking risks. This can be anything from taking business risks such as investing heavily in marketing a new product to investment risks such as investing in stocks that could go up or down.
Being completely risk-averse will likely see you pouring all your savings into a basic savings account. Although you may make a small amount of money through interest, these accounts historically do not beat inflation and you will therefore see the value of your savings reduce over time.
The remedy to being afraid of risk is understanding it. When you know the real risks involved in certain investments you can weigh them up against the potential rewards and assesses whether they are worth it or not.
Pretending You Know Everything
“If you wish to improve, be content to appear clueless or stupid in extraneous matters” – Epictetus
In our super-connected world, it is easy to slip into a trap of wanting to appear all-knowing all of the time. We look up to ‘influencers’ who seem to lead perfect lifestyles and appear to have an answer, or at least a strong opinion, on almost every matter.
Knowing that you cannot know everything is crucial to success in two ways:
- It allows you to constantly stay inquisitive and open to new ideas in your area of expertise
- It stops you from wasting your time on matters which are of no value to you
For example, if you specialise in forex trading, the details of the latest TV show, the latest sports scores and what your neighbours are up to is not at all relevant to achieving your ultimate goal.
We’ve all done it. We find ourselves looking at situations negatively…
“What’s the point? I’ll never become a millionaire”
Frankly, if you think like this – you never will.
Although it can be healthy to apply a certain level of pessimism to situations, your overarching mindset must be positive to achieve success. Think of it like this…
“I WILL become a millionaire…but perhaps selling chocolate teapots isn’t the right route to achieving this”
Being generous with Your Time
We all want to be thought of as generous and we often find ourselves saying yes to things even though they don’t interest us or bring us any value.
Being more cautious about how you spend your time doesn’t mean you should stop helping others. But it does mean that you should consider how you can best support people given your situation.
For example, it might be very nice of a brain surgeon to volunteer for litter picking – but is that the best use of their time and skills?
Learning how to say no will help you focus on how you can make the biggest impact possible, whether that is growing your wealth so you can support your loved ones or applying your knowledge and skills to supporting your community or environment.
Becoming a Forex Millionaire
Becoming a millionaire takes more than just knowing how to generate income. It also takes discipline to repeat those income-generating tasks and to not spend more than you make.
In this guide, we have walked you through some habits which may stop you from becoming a forex millionaire. Take time to assess which of these habits you have and work out ways to eradicate them from your life.
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Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day!
Live from the Platinum Trading Floor.