Trading Forex with money alone as a source for motivation is not enough
Trading Forex is a difficult business requiring persistence, patience and discipline. Many professionals such as my personal mentor Lense Berg prefer family as their source of motivation, laying down their steps of actions and addressing them to their spouses. I too in the cause of busting many accounts have realized its not just about a trading system but the reasons for trading too. Consider regaining the right approach by answering the following questions:
1. Why do you want to trade?
There are two very popular reasons people choose to trade
· Money : there is no doubt about it, few professions can take someone from ridiculously low capital to extremely high levels of capital in a very short amount of time with very few barriers to entry.
People like Nicolas Darvas turned $30 000 into more than $2 million in less than two years, this is a significant reminder to us all just how quickly extreme wealth can be created by a trader when all the pieces of the puzzle fall together just right.
You don’t have to start with a ton of cash or earn some degree of cash to start trading Forex all your way up. You can run your trading career rather quickly and cheaply.
When one considers different ways to turn a small amount of money into an extremely large amount, trading is often considered the quickest and easiest way to get rich.
· Freedom : The next appeal of becoming a professional trader is a promise of infinite freedom and self-reliance
When trading Forex there is no boss to answer to, you can virtually trade from wherever you want. There are no employees or colleagues to worry about, you can trade from your kitchen in the evening and cook at the same time and nobody would tell you it’s not done that way. This kind of appeal is fueled by the idea of complete self-reliance.
As a professional trader only you are responsible for your success. You don’t have to convince your folks or partner that your idea is a good one. You don’t have to worry about an individual on the other end of the business deal living up to his end. When in the zone only your results matter, no other person can stand between you and your potential for success.
2. Do you have the right resources?
Just like any profession, to begin this venture you need resources that allow you to be accountable.
- Strategy: This does not only include reading price action and taking trades correctly, but rather a strategic way of governing yourself as a business individual. A method of preparing for your trading session, a method of handling your thought process during the trading session, a method of recording everything that happens during the session and reviewing records for gradual improvement.
- Motivation: As mentioned above that most people are motivated by money and freedom, most professionals argue that these are not good motivation long term. There are many ways to be rich besides trading, they provide the same money and freedom.