Why do you trade?
I was about to call it a week… but something came to my mind.
Sometimes putting things into perspective can help you see them from another angle. So I thought about an important question than can help you get better results…
Why do you trade?
Don’t answer because you want to make more money, because that’s not the correct answer.
Actually, you want to make more money because __________________
You need to fill in the line…
The reasons are different from trader to trader, some of them might be:
- Because I want to spend more quality time with my family
- Because I want to support other causes
- Because I want to give my family and myself a better lifestyle
- Because I want to trade and travel around the world
You name it.
Now, here is the trick…
Let’s do a little exercise, I want you to think in terms of your real goal alright.
Lets say you want to spend more quality time with your family…
Here is another question:
If you really want to spend quality time with your family (your main goal goes here), then:
Why do you rely on magical formulas that tell you when to trade the market?
If you really want to spend quality time with your family, then you need to use something objective, something you can rely on, a system that makes sense.
Why do you rely on other traders opinions?
You are not going to have other traders opinions forever, but you want to spend quality time with your family for ever right? So you need to learn to come up with your own trading ideas, study.
Why are you trading a system that you dont feel comfortable with?
If you really want to reach your main goals, you need to trade with a system you feel comfortable with, otherwise it will be impossible to trade with discipline, and if you dont trade with discipline, you will not get consistent results.
Why are you still trading the news announcements?
It made sense a few years back, but not any more. The market doesnt react the way it use to to important announcements, just develop a reliable system.
Why you never analyze the long term charts do determine which ones to trade?
If you analyze the long term charts, and trade only in that direction you will have higher chances of success on each trade. So you know what you need to know.
Why you never adapt to the market conditions?
The market is always different, it might look the same, but it isnt. Therefore you need to be able to adapt to the market conditions and trade accordingly. You cant trade in the same way every single day, ADAPT.
Why you dont care about your exits?
Exits are more important than your entries, at the end they will determine how well or bad you did with your trade. So give some thought about them.
Why you never manage your trades?
Every single trade is an opportunity to either: win more if the market moves on your favor.
There are other questions that you need to ask yourself.
But the main goal of this exercise is to put your real goals as a perspective, think about them. And if you really want to achieve them, you know exactly what you need to do.
What are your real goals? Have you put them into perspective yet?
Its finally Friday, how did you do this week?