Perhaps you went into lockdown with big plans … new skills you’d learn … getting fit … writing a novel … learning to trade profitably …
How’s that going for you?
Waning motivation affects us all. Trading is a solitary pastime, one with frequent setbacks and a steep learning curve – all things that make giving-up too tempting. Kickstarting our trading routines can feel impossible, but there are some simple ways to get going …
Our brains are great reward-seekers. Make your trading routine a pleasurable part of your day. I reward myself while trading with regular cups of coffee – it’s a small pleasure but keeps me going through the morning session!
The obvious trading reward is profitability, but any trading routine will have dry patches when it feels like we’re wasting time, and it’ll have drawdowns, when it can feel like we’re throwing money down the drain. So relying solely on profits to motivate us – it’s like to wear thin at times.
Consider trading with a higher success rate. Usually success rates and risk-reward ratios are battling against each other. The higher your RRR, the lower your success rate. So, if you’re finding your down periods too long, consider going for a lower RRR but a higher success rate. Those regular little wins can be hugely motivating. Obviously, test it first, and track results to monitor your progress.
As we’ve seen, not every day will end profitably, but pat yourself on the back for days when you’ve traded well and stuck to your rules, even if it hasn’t worked out that day. Consistent trading is everything.
There’s nothing wrong with having ambitious goals with our trading. Think about what you’re working towards … financial security … the better things in life … being able to help family … these are what drive our motivation in trading.
However, they should be balanced with realism about what that journey will be like (bumpy) and how long it will take.
The faster you’re looking to make money, the more volatile your returns are likely to be. If you want a smoother ride, look for slower, steady profits.
If your trading routine is too arduous, you won’t stick to it.
If you want to run a marathon, you don’t start off with a 26 mile run – you build up in small stages.
Find a trading routine that isn’t going to be too tough in terms of time, learning and financial strain. It doesn’t have to be the most profitable trading method you can find – better that it shows more modest returns, but is achievable.
If you prefer to use your mobile phone for trading – find something that works on mobile trading platforms. If you’re a morning person, look for systems that work earlier in the day. If you know you won’t find time every day, consider a weekly strategy, or a day-trading strategy you can dip in and out of.
Routines, plans, to-do lists – without these simple tools, we are drifting aimlessly. And it’s too easy to lose hours, days, even weeks, especially in lockdown!
Establish a simple routine for the days you want to be trading. Not hours spent staring at screens – short, manageable periods which won’t clash with other commitments.
Want to improve your trading skills? Regularly set aside 10 minutes … 30 minutes … (whatever easily fits in for you) to devote to reading up on the area that interests you, running through trading videos, or checking through your old trades. Build this into your trading routine.
When motivation is failing, one of the first routines to suffer is record-keeping. But it’s vital to be able to look at the big picture, because this will show us our long-term profitability which helps keep us on track through the down periods.
Taking note of our failures enables us to make adjustments and improvements to our trading. While being aware of our wins helps drive our motivation.
Last month, Covid ran amok through my own family (fortunately my household are all recovered). But, in a (failed) effort to stop spreading it to each other, we each locked ourselves away in our rooms, stuck on screens for company.
At the end of the month, when the last of us came out of isolation, I looked around at my kids and was horrified by how pale they all looked. I know it’s the middle of winter, but they’d not seen any daylight for weeks.
All our usual family routines were shattered, positive habits fallen by the wayside, and it felt like starting from scratch trying to get back into some kind of ‘normal’ life.
We’re all dealing with personal and financial situations that are unlike any others before, and trying to navigate markets in a new environment. But that doesn’t mean we need to be out of control. Building and managing our motivation helps us to make good decisions, build positive habits and learn new skills.
And if I can get my kids to knuckle down to online school come Monday morning – anything is possible!
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