I’ve worked with many traders that don’t know the answer to this simple question, yet I find once they do, their trading journey comes alive. Trading, like anything new and challenging, needs focus, a lot of it! Now the first step to refine your focus is to really dig deep and find out your why! Why you are starting down this weird and wonderful path of trading, why do you want to trade?
When I first started, my “why” was to be rich (I was young)! Sure, money is great, it gives you options in life, but there has to be more than that. What will the money buy you? and I don’t mean fancy material objects. I mean more meaningful things. Will it help raise your children? Will it help pay your mortgage? Can it help you support a charity or cause? Is there be a deeper meaning?
I’d like to share with you an exercise I find really helpful with new traders. This will help you find your “why”, this is something that I did in my career and it helped me a lot.
Grab a piece of paper and a pen & turn your phone on aeroplane mode. (please!) Preferably be seated somewhere quiet. Now, at the top of the page write out “Why do I want to be a trader?” Set your time for 5 minutes and hit the start button! Now write out as many reasons as come to your mind, it can be 1 it can be 50. When the timer has finished I want you to pick the top 3 reasons. Write these reasons down leaving 5 lines between them. Now I want you to drill down a minimum of 3 times! How? By asking “why” each time you have written an answer
Eg.I want to be a trader because I want to make money!
so I can support my family
as I love them
and I want them to be happy.
So really this initial answer of “I want to make money” now becomes something much, much more powerful “I want to trade so I can support my family as I love them and want them to be happy”.
Now this becomes a powerful reason and something to fuel your focus!
I hope this helps you on your trading journey.
Until next time.