NEW BEGINNINGS

January 3, 2012 at 3:39 pm Filed under Inspiration

“Motivation is what gets you started. Habit is what keeps you going” Jim Rohn. The beginning of a new year has the tendency to put one in a reflective mood. It gives rise to the infamous “New Year’s Resolutions” which many have come to regard with skepticism, largely due to  the fact that they rarely outlast the month of January. As a trader, the same applies, but while every single day represents an opportunity to grow by shedding bad habits, the start of a new year is an important land-mark, and is accompanied by a certain urgency to effect positive changes for the year ahead. As a forex trader, the past year(s) will have undoubtedly tested you, and if you have stuck with it thus far, much kudos to you. You may have developed some habits that are counter-productive to your trading success, or you may find that by making some changes you will indeed be able to out-do yourself, if you already have success. You now have the opportunity to examine your past performance, and consider what changes need to be made in order for you to maximize your potential in 2012.

Habits are hard to break, and within the trading environment, maintaining them can be expensive both financially as well as psychologically. However, the good news is that when bad habits are replaced with more positive ones, they eventually evolve into newly-formed habits. Do not overwhelm yourself by focusing on too much at once. Giving individual attention to one habit at a time will increase your odds for success. Below is a comprehensive formula to reforming bad habits:

• KNOW YOUR HABITS: Before you can effect change, you must first know what habits need to be changed. If a persistent action of yours is almost always followed by negative consequences, then you have probably developed a bad habit. For example, you tend to jump into trades without first having confirmation per your given trading strategy. Sometimes you get lucky, but more often than not, you sustain a loss, or suffer through deep retracements before price finally moves your way. The urge to repeatedly exhibit this behavior is usually very compelling, indeed, as is usually the case with habits as a whole.

• DESIRE TO CHANGE:  In order for you to want to change badly enough, it is important to have a goal in mind. The more specific the better. A good approach might be to first identify a time period within which you will refrain from indulging in the habit you wish to change. Upon completion of that period (1 month, for instance) you will be able to make a comparison between your previous trading results and that from the trial period. Positive results can act as reinforcement, thereby providing motivation to change.

• CONSISTENT ACTION : Consistent, repetitive daily action is instrumental in breaking and replacing a bad habit. A satisfying by-product is usually brand new, healthier, more satisfying ones that can greatly improve your quality of life. You will need to commit to finding other ways of occupying yourself that will restrict screen time, and limit the temptation to force a trade. Going for a run, or walk in nature, for example can be beneficial. Consistency is important in the forming and elimination of habits, so this step is critically important.

• PERSEVERENCE: This step requires that you proceed in spite of your own reluctance holding you back. It will, at times seem incredibly difficult to grasp the mental discipline required to stick with the plan. Seek the assistance of a trading mentor, or another trader that you can rely on for advice and motivation. If you can make it to this point, you will be well on your way to discarding an old habit.

Trading success is attainable. However, it requires that we first demonstrate our desire and preparedness for it. Our personal traits is largely what determines whether we achieve success, whether in trading or life in general. Commit to giving yourself the best chance, and make this year a year to remember. Good luck, and I wish you all a healthy and fulfilling 2012!