by: Bill Zimmer Friday, December 13th, 2013 at 10:04 am
A speculator is a man who observes the future, and acts before it occurs. Bernard Baruch
Why do you trade? What motivates you? To most traders, the answer is obvious, isn’t it? We trade to make money. Many traders, however, say that they would trade even if they merely earned just a little. Some interviewed in “Market Wizards” by Jack Schwagger, said that they initially took any job in the financial markets just to be around the action. Money wasn’t the only motivator. Trading provides its own rewards.
One seasoned trader, for example, said he would trade even if he didn’t earn much money at it. He said, “I’d probably still do it. It’s so interesting. I think it’s a lot better than punching a clock somewhere. I find the game itself interesting. I enjoy watching how stocks react to news. It’s always amazing to me how you can see small movements snowball into large herd mentality sorts of movements. A minor piece of news starts some selling, and then all of a sudden, there’s more selling and more selling, and then there’s a huge avalanche of selling. And it all started with just a minor piece of news. But then at other times, it won’t do that. I find that very interesting.”
Another seasoned trader says, “I like the freedom trading gives you, the ability to earn a living while not having to have employees, the mental challenge, and the constantly changing environment.” There are many reasons to pursue trading, and money is usually not the only reason. Many profitable traders truly enjoy trading; they have a passion for understanding and mastering the markets.
In systematic studies, psychologists have repeatedly discovered that peak performers have a true passion for what they do. Whether it’s art, sports, or business, the folks at the top are not primarily motivated by fame, glory, respect, or status. They are driven by the pure love of the game. Winning traders, similarly, have strong interests in the markets, and this passion is the driving force that puts them at the top, year after year. But many novice traders are drawn to the markets to meet deep-seated psychological deficits and needs. They yearn for respect and status. They hope that by earning huge profits, they will be able to solve all life’s problems. Trading to satisfy these motives will most often lead to disappointment. For long-turn survival it’s very important to be motivated by more than the money.
Trading should be viewed as fun and challenging. You should do it because you love it. If you can, you’ll find you can trade more creatively, effortlessly, and profitably. What motivates your trading? Do you see it as a challenge? Is it fun? Is it enjoyable? Be motivated by the intellectual challenge. Follow your passion for trading. Do it because you love it.
