‘How do you eat an elephant?’ One bite at a time… Rome wasn’t built in a day… etc.
Another significant reason why people fail is by being overwhelmed by the size of a task. If you’re over weight then thinking or visualising yourself as an underwear model will likely be a significant de-motivator rather then something to help you get into the gym regularly.
And so with trading… Put yourself under pressure to make 300 points a day, increase your account size by 10% per week or stop working and trade full time immediately (without having the means to do so) will just see you freak out, blow up your account and create a massive future barrier to doing anything. You have to take steps forward every day, crawl, walk, run and only then can you consider flying 😉
So here are some possible ‘chunks’ to break the journey down into.
Get up at the same time every day, analyse the markets, record what’s going on, record some possible setups, take note of what happened the previous day. Do this every day for two weeks (first target) then for a month (second target) then three months (final target… by which time this should be so ingrained you can’t not do it.
What courses, books, people do I have to read or learn/study from in order to kick arse? More on this in Part 4 (coming soon)
Some things to do – but not all at once
Trading business plan (I will publish mine at some point), Setups (what you’re actually going to use), Improve your emotional management of trades (i.e. don’t freak out) and pull the trigger when you have to. Treat trading as a business.
Goals (in easily digestible stages)
- Get consistent – minimize the downside and stop emotionally reacting to losses by trying to ‘pile back into the market’
- £50 per week – just slowly build your account – gain confidence
- £100 per week – stretch for the goal
- x(?) per day – now we’re getting somewhere
- Increase account size – takes discipline to not blow the money you’ve made on gadgets 😉
- Use levarage – involves managing the emotion associated with having larger amounts ‘at risk’ initially
Write down the strategies and record the effectiveness of each one under different market conditions. What works? What doesn’t work?
You can’t do it all at once or go from zero to hero immediately. Break the whole thing into smaller steps. Try to do a piece of the puzzle every day. Take pressure off yourself and enjoy the process. Aim for consistency and create new habits 🙂
Concentrate on the right behaviour and the results will begin to take care of themselves.