Fixed Mindset
People with this mindset only perceive their knowledge as a fixed trait. From the website called Renaissance, a fixed mindset is seen as people who have a set of thinking believing their ability such as intelligence is set to fix. So in other words, people who have this mindset believe that their quality as human beings is limited from the time they were born in this world. They also think that talented people are a gift from the time they were born into this world.
If we try to connect it with forex, then, people with a fixed mindset are people who believe that their ability to trade the market is stuck at that level and they think that only talented people can trade properly the market. This is not true because when you try to continue learning about the development of the market, you will know for sure that the market is changing every day and you can adapt to it.
Growth Mindset
In contrast with a fixed mindset, people with a growth mindset always seek improvement to their quality as human beings. According to Renaissance, people with a growth mindset are people who believe that their value can be developed by honing their skills through dedication and hard work. This means that growth mindset people always try to increase their value in terms of their quality, be it intelligence or personality.
With a growth mindset, you are continuously scouting the market which eventually will make you understand that the market is changing every day. Thus, you can adapt to it if changes occur. We know that changes are inevitable. Take Covid-19 that suddenly changes the way we live where we do the transition from traditional to modern technology like work from the office to work from home.
Why Is It So Important To Have A Growth Mindset To Trade?
The question above is interesting to answer as a growth mindset itself by short definition is a set of thinking that continuously seeks development to people who have it from their well being or their basic ability through dedication and hard work. Not let us cut to the chase about the main importance of having a growth mindset to trade is.
First, just like I wrote in the previous paragraph, the market conditions are always changing where what you see today may not be the same tomorrow. It is like where you read the book about the ancient beautiful city that is not the same today when you look at the city today. It can be more beautiful or the other way around.
Second, with a growth mindset, your personal life will be developed and in return, you will feel relaxed when you are trading the market. With the development of your personal life, you can think rationally and clearly as this is related to the trading psychology wherein in the market we are not allowed our emotions to take over the trade. Once, you let it control, you will surely invite a destructive impact on your trading account.
Conclusion
Regarding fixed and growth mindset itself is related to trading psychology in which your trading journey depends on your mindset. If you have a fixed mindset, then, when the market changes you will not be able to follow it as you believe that the market conditions will stay the same while the truth is that what you see today may not be the same tomorrow. However, with a growth mindset, you know how to deal with the changes that may occur in the market. Besides that, a growth mindset will also help you to develop your personal life called personality which eventually makes you execute trade rationally and clearly based on your mind and not based on your emotions.
Written by Andre I.
Reference
Renaissance. What is growth mindset?. Retrieved from Renaissance (Accessed 4 April 2022): https://www.renaissance.com/edwords/growth-mindset/#:~:text=Fixed%20Mindset%3A%20%E2%80%9CIn%20a%20fixed,success%E2%80%94without%20effort.%E2%80%9D%20(