By Darrell Martin
Have you ever taken the time to contemplate the real reasons behind why you are doing something? It may be a skill you have learned or the vocation you chose. When you take the time for some serious introspection, it helps you to prioritize as well as realize those motivating factors. This is applicable to trading as well.
The main reason that probably comes to mind when you think about why you are trading is to make money. Whether used for good or evil, money is the driving force behind most people.
When you first thought about becoming a trader, you may have thought it would be an easy way to make some extra money or a convenient way to eventually say goodbye to a nine to five job. Maybe you were fascinated by how the economy or the news influenced the markets and thought trading as a hobby might be a potentially paying opportunity.
Are you trading because you love your computer? Is it because there is a certain platform that you are sold on? Did someone tell you to trade an instrument that you tried and you have had some good luck with it? Perhaps, this is the only instrument you will trade!
The reasons that first piqued your interest are as varied as are the reasons you are still trading. However, if you have not taken the time for some introspection, it is time to do just that. Why are you trading? Beyond the obvious dollar bill, what will you use that money for when you are profitable? It might be time, security or a dream you’ve been waiting to fulfill. The reason might be more time to say yes to your spouse or children. The security might be your own or something you pass on to loved ones. The dream might be a vacation, a nicer home, a car or being debt free.
By taking the time to figure out why you are trading, it will help you get through the trials that may hit you until you reach your goals. It is important to have your priorities straight so that when you have a losing day, you are not throwing the computer against the wall! Knowing why you are trading helps you be passionate and allows you trade for the right reasons. It can help you put the greed, the revenge trading and the poor risk management aside because you will be focused on what is most important.
It doesn’t take much time to reflect on what you really hope to achieve in your trading. Be sure to write the reasons down and put it where you can see it as you trade. It can be a daily reminder to help you keep your ultimate goals in perspective. Don’t give up what you want most for what you want in the moment. Don’t give in to the “just one more trade to win back what I’ve lost” feeling that happens to even the best traders. Having well-defined goals will help you practice good risk management.
Put the time and effort into knowing what you want to achieve. Take the time to learn and study and then learn some more. The markets are constantly changing. Don’t think that one webinar has taught you all you ever need to know about trading! Do all you can to be the best trader you can be. There are people out there who want you to succeed.