A common theme I’ve come across when talking to DIY investors and traders is they often cannot articulate why they are investing or trading. Of course they all say the reason is to make more money but this simply isn’t enough of a motivator to be successful in today’s markets. To be successful, you need to think deeper.
So let’s take a moment and talk about why you’re doing this trading thing.
So first, why invest at all? What is investing to you?
Investing takes on all kinds of forms not just financial investing.
If you exercise regularly, you are investing in your health, I need to do more of this by the way.
If you’re like me, a part time chauffeur hauling your kids around to sports activities, cub scouts and such, then you are investing in your children.
If you’re attending college in hopes of a better career, sorry class of 2008, then you are investing in your career.
While each of these types of investing are different, they all share a common purpose: to provide for the future.
Investing in your health will increase the chance of a happier longer life with loved ones. (Like I said, I need to do more of this)
Investing in your family, especially your children at a young age, can build strong relationships that may help you in times when you may need more from others but have less to give in return.
Investing in your career now can help you climb the professional ladder that may be out of reach at the moment.
So ask yourself this question, “What is your motivation behind financial investing?”
If your answer is that you want a big trading account, then you’re going to have a tough time getting there. When times get tough during trading, wanting a large pile of money is not going to motivate you to stay disciplined. (More on that later)
But if your motivation is to provide for your family or something else that actually means something, you are more likely to stick to your trading or investing plan.
So here’s what I want you to do.
Write down two things that are motivating you to trade or invest in financial markets.
Common motivations are to build wealth, create income to support a family, and to prepare for retirement.
These are great but I want you to write down two things that go one step deeper.
Maybe you want to travel the world during retirement or get that house on the beach to spend your days with your partner
Maybe you grew up poor and want to provide a better life for your kids than you had.
So what’s your motivation?
What is your Why?