Many of us have difficulty trading and lose desire after making a string of unsuccessful transactions. There are stories of traders who put in a lot of time and effort practising the market, trying out different methods, and building their confidence, only to be left feeling disheartened and defeated in the end. Many of us have been through something similar. We’ve all been there, and more than once we’ve pushed through the pain rather than admitted it, only to find ourselves in an even more dire situation. Being able to accept defeat and begin making adjustments is a vital part of developing into a successful trader.
In this piece, we’ll look into the reasons why traders lose faith and how to fix them so you can start making progress again.
6 Awesome Tips To Motivate Yourself For Trading
Home-based traders often work alone, which may lead to feelings of isolation and loneliness if they aren’t achieving success in the market. Participating in online chats or reading about the strategies used by successful traders is a great opportunity to meet others with similar interests and get a sense of belonging. Many great traders have penned books that might help you learn the profession and keep you motivated.
1. Don’t Be Hasty
Trying to make money quickly is a typical error made by traders. They mistakenly believe trading to be a fast track to wealth but are swiftly disillusioned when they realize this is not the case. You don’t understand how trading works and keep making mistakes if you’re attempting to become rich quickly. Both excessive trading volume and excessive trading risk may lead to financial loss and emotional distress. Many seasoned traders agree that it’s advisable to ease into trading gradually rather than diving in headfirst. When you stop worrying about money, it will come to you.
2. Take A Break
The realization that we can do no more may be instructive. This is a chance to take stock of your situation, evaluate where you went wrong, and figure out how to reignite your passion for trading. Take some time off, relax your thoughts, and go within to remember why you first fell in love with trading if you’re feeling lost.
3. Don’t Trade Unless Demo Trade
If you don’t know what you’re doing or your strategy is too sophisticated, you’ll lose money and quit. Stick to basic price action strategies, ‘bare’ charts, and longer time periods to keep things simple. Make sure you have practised and perfected your trading strategy before going live. As we’ve already established, you shouldn’t enter real trading until you’ve developed a trading strategy.
Getting back your trading enthusiasm is a lot easier with demo trading. If you’ve lately been exhausted and like quitting trading, try taking a break from live trading and returning to the demo for a bit. Demo trading will put you back in a state of mind that is neither positive nor negative, allowing you to see things more clearly. In addition to being a tremendous aid in reigniting your interest in the market, the fact that it once again seems more like a game than a place to make money is a bonus. If you stop thinking about trading as a means to make money and instead see it as a game that you want to play well in order to win, you will be in a lot more productive mental state. Many automatic trading bots like Qumas AI offer traders a demo account with which they can practice trading without wasting real money. You can also take advantage of these bots.
4. Think About What Inspired You To Start Trading?
It’s important to remember what inspired you to start trading in the first place. It’s possible that by taking a step back, you’ll be able to rekindle that fire inside you. Most people go into trading in search of adventure, independence, or the chance to spend more time with loved ones. One of the most alluring features of trading is the independence it affords its practitioners.
Remembering the inspiration that first got you interested in trading might be helpful in keeping you focused on the positive aspects of the industry. Finding your own motivation again may be all that’s needed to set you straight.
5. Plan Everything
You need to have a trading strategy and be systematic and organized. Having a well-defined trading strategy should be an early and ongoing focus for any trader just getting started. Follow your trading strategy and be self-disciplined to avoid trading based on your emotions. Once you have had some experience with this and know when to use it, you will have a solid foundation.
Having your trading strategy down on paper might help you stay focused and accountable. Having a trading strategy that you can stick to every day is essential, particularly if you are just starting out. Once you’ve made it a habit, you won’t even need to look at the paper to make sure you’re following the guidelines.
6. Embrace Moderate Risk-Taking
Here’s a simple method for calculating how much you can afford to lose on each deal. Consider how much of your available funds you are willing to put at risk in the market and how much you can afford to lose. The 1R risk for each deal may be calculated by dividing the total by 20.
You should set your risk at a level where you can afford to lose it 20 times in a row and yet be willing to make another deal. By limiting your exposure to risk in every transaction, you will be better able to cultivate and sustain a sound trading attitude.
If you start putting more money at risk in each transaction than you can afford to lose, you will rapidly find yourself in a position where you want to quit trading because you have blown through your account. Let’s not go there, shall we?
Key Takeaways
You should take a break if you feel like you’ve hit your trading limit and are ready to quit. There is still time to recover and regain your enthusiasm for trading; this is not the end of the world. We’ve all reached that moment when we need to take a step back and assess where we’ve been before we can go ahead. Stop what you’re doing and simplify your trading strategy. There is no such thing as a foolproof trading methodology, and the best traders are always refining and improving their methods.
Trading success is mostly determined by one’s mindset and strategy. Maintain a positive frame of mind, settle on a reliable trading strategy, and practice responsible risk management, and success will come easily. IronFX provides a multitude of learning tools to help you stay on the straight and narrow. We make sure you have access to a wealth of materials, including webinars, informative articles, podcasts, and courses, whenever you need them. Your personal account manager is always available to answer your inquiries and provide assistance.
