Psychology of smart and successful brokers

By Adinah Brown

About a decade ago, the Forex market was booming in such a way that opening up a brokerage required no more than a few thousand dollars and a little bit of skill. Fast forward a decade and the market has become over-saturated, incredibly competitive and with stricter regulatory guidelines, that make any forex business increasingly difficult to manage. This means that opening and managing a forex brokerage today requires skill. As it is true for any business, not everyone is cut out to be an entrepreneur. Some people prefer the stability of a job, while others, who are hungry and willing to start their own business, lack the ability and stamina required to do so.

According to the latest data released by the Small Business Administration, about a third of business fail during the first two years. In many cases it is due to lack of experience, but according to psychological studies, it is the skills and character of entrepreneurs that often determine the success or failure of a business.

What then, do successful entrepreneurs have in common, that the majority of people who never start a business don’t?

They are persuasive. Entrepreneurs are natural salespeople, whether they are selling a product, a service or an idea. They are charismatic and posses outstanding social and interpersonal skills, all required to convince others that their business, that their product, is the best and destined to success. They appreciate the value of forming relationships and will invest the necessary time and energy. They prioritize networking and when they speak to others, they inspire trust.

They don’t think of reasons why they might fail. They appreciate risk differently and have the self-confidence needed to be convinced that they will succeed. You’ll never come across an entrepreneur who thinks their business might not work. Ask 100 successful entrepreneurs if they think their business will succeed and you’ll get 100 yeses, all backed by what seem to be irrefutable reasons.

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They don’t care about what other people think of them. They often do things that others think are crazy or disagree with, but they simply don’t care and move forward, like racehorses.

Successful entrepreneurs are jack-of-all-trades, they have to be.  While it is true that they often have a network of professionals they can call up for help or advice, they themselves are not specialists, but rather generalists who do whatever is required to get the business going. During the start-up phase in particular, they may find themselves going to meetings, buying office supplies, picking up the phone and managing every little detail of the business, because at the early stages of development, they have to be.

Successful entrepreneurs, those who are capable of taking a business past the initial stages and into stable territory (the eight-year mark as it is often referred to), are planners. They have good organizational skills and take risk responsibly. They may jump out of a plane, but they’ll check their parachute before taking the leap.

Do you have what it takes to start a forex brokerage in today’s market? Because not many do, this may be your best chance at hitting gold in a market that is changing and weeding out the weak to leave only the best ones standing.

About the Author:

Adinah Brown is a professional writer who has worked in a wide range of industry settings, including corporate industry, government and non-government organizations. Within many of these positions, Adinah has provided skilled marketing and advertising services and is currently the Content Manager at Leverate.