WHY DO YOU WANT TO BE A DAY TRADER? - CHAPTER 2

Chapter 2: Finding Your "Why" in Trading: A Shield Against Unnecessary Pressure

In the fast-paced world of trading, where fortunes can change with a single click and the weight of financial markets bears down on every decision, there is a profound and often overlooked element that can shield traders from the undue pressure that can lead to poor decision-making: finding your "why."

This "why" is the intrinsic motivation that propels you forward in your trading journey, the internal force that transcends extrinsic goals and external pressures. It is the profound reason that makes you choose trading because you want to, not because you have to. In this chapter, we will embark on a quest to unearth your "why" in trading and explore how it can be your steadfast companion in the tumultuous world of financial markets.

Understanding the Pressure in Trading

To appreciate the role of intrinsic motivation in mitigating trading pressure, we must first understand the nature of pressure itself. Trading pressure is the result of external and internal factors that create stress, anxiety, and self-doubt in traders. These factors can include:

Financial Targets: The pressure to meet monetary goals or expectations, often set externally or driven by personal financial needs.

Fear of Loss: Anxiety stemming from the fear of losing capital, which can lead to impulsive decisions or hesitancy in executing trades.

Performance Expectations: The pressure to consistently perform at a high level, often driven by societal or self-imposed expectations.

Market Volatility: The unpredictable nature of financial markets can create an environment of constant uncertainty and pressure.

Comparison with Others: The tendency to compare one's trading performance to that of others, leading to feelings of inadequacy or unwarranted competition.

In the face of these pressures, many traders often feel compelled to make choices in trading because they have to—not because they genuinely want to. The desire to avoid financial losses, meet external expectations, or achieve extrinsic rewards can overshadow the intrinsic joy and passion for trading. This misalignment between motivation and action can be detrimental to a trader's psychological well-being and overall performance.

Embracing Intrinsic Motivation: The "Why" That Matters

Intrinsic motivation is the antidote to unnecessary trading pressure. It represents the deep-seated desire to engage in trading because you genuinely want to, because it aligns with your passions, interests, and aspirations. Your "why" in trading is the source of intrinsic motivation that empowers you to make choices based on desire rather than obligation.

But what does this "why" look like? It varies from trader to trader, but here are some common elements:

Passion for the Craft: Your "why" may be rooted in a profound passion for the art and science of trading. It's the joy you derive from analyzing charts, uncovering patterns, and making informed decisions.

Personal Aspirations: Your "why" might be intimately tied to your personal aspirations and goals. It's the vision of financial independence, freedom, or lifestyle enhancement that trading can help you achieve.

Intellectual Challenge: For some traders, the intellectual challenge of trading is the driving force. It's the desire to continuously learn, adapt, and grow in a dynamic and ever-evolving field.

Fulfillment: Your "why" could be the sense of fulfillment and purpose that trading brings to your life. It's the feeling that you are pursuing a meaningful endeavor aligned with your values.

Independence: The desire for independence and autonomy in your career choices can be a powerful "why." It's the recognition that trading provides you with the ability to chart your own course.

Continuous Improvement: For others, the "why" is rooted in the pursuit of continuous improvement. It's the understanding that every trading day is an opportunity to refine your skills and become a better trader.

The Power of Intrinsic Motivation

Intrinsic motivation holds the power to transform your trading experience. When you trade because you genuinely want to, the pressures of external expectations, financial targets, and fear of loss lose their grip on your decision-making process.

Emotional Control: Intrinsic motivation enhances emotional control. You are less likely to be swayed by fear, greed, or impatience because your primary focus is on the joy of the process, not the outcomes.

Discipline: Discipline becomes a natural byproduct of intrinsic motivation. You adhere to your trading plan and risk management strategies not out of obligation but because they align with your desires and aspirations.

Resilience: Intrinsic motivation breeds resilience. Setbacks and losses are seen as opportunities for growth rather than insurmountable obstacles, empowering you to persist through challenging times.

Focus: Your focus sharpens when you're intrinsically motivated. You concentrate on the trading process, analysis, and strategy implementation rather than fixating on short-term gains.

Continuous Learning: Intrinsic motivation fosters a love for continuous learning. Each trade is viewed as a chance to expand your knowledge and refine your skills.

Discovering Your "Why"

To harness the power of intrinsic motivation and shield yourself against unnecessary pressure in trading, you must embark on a journey of self-discovery. You must unearth your unique "why" in trading—the driving force that resonates with your passions and aspirations.

Reflect on Your Passions: Consider what aspects of trading genuinely excite you. Is it the thrill of analyzing charts, the intellectual challenge, or the sense of fulfillment that trading brings?

Connect with Your Aspirations: Reflect on your long-term goals and aspirations. How does trading align with your vision for the future? What role does it play in achieving your desired lifestyle or financial independence?

Embrace the Joy of Learning: Recognize the joy of acquiring knowledge and improving your trading skills. Embrace the idea that every trade is an opportunity for growth and development.

Seek Inspiration: Engage with trading communities, mentors, or resources that inspire your intrinsic motivation. Read about the journeys of successful traders who share your passion.

Your "why" may evolve over time as you gain experience and deepen your understanding of trading. Embrace this evolution as a sign of your commitment to the craft and your ongoing growth.

A Shield Against Unnecessary Pressure

As we journey through the chapters of this book, remember that your choices in trading are not mere transactions in the financial markets. They are expressions of your intrinsic motivation, your desires, and your aspirations. By embracing this philosophy, you will unlock the full potential of day trading—a journey where passion meets profit, and fulfillment accompanies financial success.

In the chapters that follow, we will delve deeper into the practical aspects of day trading with intrinsic motivation as your guiding light. We will explore strategies for maintaining emotional control, cultivating discipline, and staying resilient in the face of adversity. We will share the stories of traders who have harnessed the power of intrinsic motivation to thrive in the dynamic world of day trading.

By the end of this journey, you will not only have found your "why" in trading but will also have armed yourself with the tools to navigate the pressures of the market with resilience and purpose. Your trading journey, once marked by extrinsic pressures, will be illuminated by the intrinsic motivation that drives you to choose trading because you want to, not because you have to.