by Rick Wright
Hello traders! As most of you know, New Year’s resolutions seem to have a habit of being “adjusted” or even thrown out the window completely by the second week of January; even more of them don’t make it to the first of February. This article will suggest a few trading resolutions to help with your trading in 2016.
Before we get to some suggested resolutions, I’d like to offer my point of view on trading motivation. In my humble opinion, keeping motivated is one of the most important psychological things in trading. Many new and old traders seem to lose focus, almost forgetting “why” they are trading in the first place. In fact, when asked why traders trade, many will say “to make money.” As has been discussed in previous newsletters, this “why” is usually incorrect. (Yes, there a few out there who are only in it for the money, thinking this is a way to keep “score” in life. The more money you have, the more you are winning, right? I disagree.)
Our real reasons for trading usually include things like: freedom to do what I want when I want; the ability to get paid what I am worth instead of what someone else says I am worth (a job); travel; philanthropy; toys, be it nice cars, houses, watches, whatever; the list is as varied as the traders out there! Making a list of your own reasons for trading will help hold you accountable to those reasons. I don’t mean just have them in your head. Actually write them out, or even better, find pictures of your reasons and post them near your trading computer. This is one of the most important psychological things that successful people do to achieve their goals, and I don’t think it can be overestimated.
One thing that I have found to help with this aspect of your trading life is to read books on motivation. Try to read a new one every month! I’ve been asked why you should keep trying to motivate yourself, and the answer is always the same. Why do people find it necessary to exercise every day or two? Why do you brush your teeth every day? Because it works is the easy answer. Too many new traders “lose their way” after a few weeks or months of trading. My personal belief is that their motivations have been pushed to the side by “real life.” They say they don’t have enough time, enough this, enough that. Your real reasons for wanting to trade will overcome these problems. Believe me, there is enough time in the day to become a successful trader, you just need to find the motivation to find the time!
So what resolutions should we have for our trading this year? If you know what your strengths and weaknesses are, this list should be relatively easy. I will offer a few more suggestions this week. For the experienced traders out there, this list may seem too simple. However, the experienced traders often break some of these rules occasionally, which will negatively affect their annual rate of return which is what we are all trying to improve, isn’t it?
Resolutions:
There you have it traders! A few New Year’s resolutions to help you on your way to making 2016 your best trading year ever!
Courtesy of http://www.tradingacademy.com/