For those of you following my trades in the StockTwits stream, you already know that I have had a pretty good week trading Forex. I am up about 200 pips at the moment, with three trades still unrealized which could net me another 150 pips.
Pretty exciting stuff right?
Trades! Profits! 200 pips!
Traders who are new to the game, could see it that way. Exciting.
To trade well … trading must become a grind.
Something that you do throughout the day, and that must be done. Day after day. Year after year. Emotions about those trades are not only irrelevant, they are damaging to the grind and the process of profitable trading with longevity.
Don’t get me wrong, I enjoy another 200 pips in the account as much as the next guy.
But trading … any trading, be it Forex, Options, Stocks or Futures, should be your regular routine in life. A grinding routine. If you trade for excitement, then that ‘excitement’ becomes your motivation for your next trade. And then when you hit a period of drawdown, you lose your motivation to trade. You have conditioned your psyche to trade only when receiving positive stimulus; the excitement of a period of wins. And to trade through periods of draw-down, you must trade after receiving negative stimulus, or … a losing trade
If grinding out trades can become part of your routine, and your motivation is to see the results of this grinding process after 200 trades, win or lose? This can help you survive your draw-down periods. Because at that point, you do not need to see a ‘win’ to motivate you to step up to the plate again after three trading losses. Positive or negative feelings regarding a trade are irrelevant to you.
You’re motivated instead, to see the logical, end result of the grind.