Motivation in trading... | Forex Factory

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Motivation in trading...

  • #1
  • First Post: Apr 16, 2010 8:12am Apr 16, 2010 8:12am
Hi,

I try to understand why newbies in forex are switching from one system to an other.

After talking to newbies and check what's motivate me in my trading, I found one difference.

I'm motivated to trade the perfect trade. Like David Beckman wants to make the perfect free kick and practice on it.
Newbies are motivated to make lot of pips and money.

Even if my trades get close < 0 I can get happy / motivated to continue trading because this trade was better than the one some month / day / hour ago. This quest to make the perfect trade gives me momentum in my trading.

Newbies try a system and give it up for an other because they get bad results from it.

I hope you follow my thinking

Have a nice week end.
  • #2
  • Apr 16, 2010 7:23pm Apr 16, 2010 7:23pm
Quoting seykota
Hi,
I try to understand why newbies in forex are switching from one system to an other. ..
to look for 'something better'
  • #3
  • Apr 23, 2010 5:27pm Apr 23, 2010 5:27pm
I believe almost any logical system can be improved.
Maybe better to improve some simple logical system than keep jumping
from one to another.
The more experience the closer to the reality
  • #4
  • Apr 23, 2010 6:09pm Apr 23, 2010 6:09pm
I include myself in the rookie zone and i can say that i change my strategy for 2 reasons, first because i'm trying to found my "own strategy" like everyone should do and second because i'm newbie and i'm learning with experiences and/or mistakes.


Cheers
"Those who fail to prepare, are preparing to fail."
  • #5
  • Apr 25, 2010 2:28am Apr 25, 2010 2:28am
I consider myself a newbie too and have tried about 10 different systems so far - I think it is important for noobs to go through this phase, everyone is different and what works for one may not work for somebody else. We need to find the system that is right for ourselves, rather than forcing ourselves to stick to one which may not suit our personality or time available etc.
si hoc legere scis nimium eruditionis habes
  • #6
  • Apr 25, 2010 4:37am Apr 25, 2010 4:37am
Quoting Ivan
I believe almost any logical system can be improved.
Maybe better to improve some simple logical system than keep jumping
from one to another.
It is either logical or it is not logical ( illogical ). How can you improve a logical system? Doesn't the change make it illogical?
  • #7
  • Apr 26, 2010 5:48pm Apr 26, 2010 5:48pm
I think that the main reason why new traders are switching from one system to another is because they are looking for the 'Holy Grail' system that produces 0 loss.

Even when you have a very good system that can make you money, after producing 1 or 2 consecutive losses you will start to doubt its ability and start to search for new system. This is exactly why most trader never make it in this field.

A good system is one that can triumph over long period of time. Imagine you have a system that can produce you 700 profitable trades out of every 1000 trades but because you are now trading the first 8 trades of the 1000 and find yourself losing 5 consecutive trades, you started to doubt the system and do not give it a chance to continue making money for you.

The key in trading lies in money management and psychology of the trader.
  • #8
  • Jun 5, 2010 10:37pm Jun 5, 2010 10:37pm
Quoting joaoftd
I include myself in the rookie zone and i can say that i change my strategy for 2 reasons, first because i'm trying to found my "own strategy" like everyone should do and second because i'm newbie and i'm learning with experiences and/or mistakes.


Cheers

Totally agree with you. I try to develop a trading method, run it in the market and found that not really work well.
  • #9
  • Jun 8, 2010 6:54pm Jun 8, 2010 6:54pm
System hopping is a common behaviour amongst many new and unsuccessful traders. Attached to this behaviour is most often the feeling of frustration, sometimes desperation. I believe the inputs to the behaviour most often relate to several false assumptions, which need to be questioned and systematically unravelled if a trader is to achieve consistent success in the markets. These assumptions include:

- the belief that money can be made quickly in forex and other financial markets

- the belief that the acquisition of a "good system" is the key to profitability (at the expense of the hard work, focus and adaptability required to develop a good method)

- the belief that a system can be copied or purchased to achieve success

- the belief that success can be found with technical indicators alone

- the belief that with the "right psychology," most systems are profitable

- the belief that an "edge" in trading can be found or discovered, as opposed to the reality that it needs to be developed

In addition to these false assumptions there are also commonly other factors at play, such as the setting of a target that "sounds right" and then seeking out the system to achieve that target; and the ignoring of some basic principles such as the link between actions and consequences; and the list goes on...

It is only once these destructive assumptions are proven to be false that the would-be trader starts to change his or her behaviour, and starts to focus on the long and hard road (3-5 years as an optimistic timframe) to becoming consistently profitable, which never has, and never will reside in "finding another system."
  • #10
  • Jun 9, 2010 2:24am Jun 9, 2010 2:24am
Great post, thanks.
I've been on the pre-job, and then also demo, learning path for a long while, and add some notes.


Quoting Hedginghog
System hopping ... the acquisition of a "good system" ... adaptability required to develop a good method)
A lay of the land helps in developing one's own method, to know what to select from. Hence, babypips' school.
A 'good method', or at least understanding of it and methods for other trading situations, also has to be adaptable.
Another's system, then, as you say, works only if one is fully versed in it and makes it one's own and also adapts oneself's trading to how it works.

Quoting Hedginghog
- the belief that with the "right psychology," most systems are profitable
That's a good, surprising point, one I could be called on.
Recently, I understood why the older, more famous ff methods in the Commercial Forum work: They cover every portion of trading in a way that explains and uses it effectively and balances it with the others.

Quoting Hedginghog
- the belief that an "edge" in trading can be found or discovered, as opposed to the reality that it needs to be developed
Yes, thanks. Getting oneself to consistent profit sounds as if it's that tough.
Some would put it: That's the difference between a system, whose different pieces work together enough to make profit, and a method, which only contributes to a system. Then again, a system is sometimes a looser collection of pieces around a really good method.
If one defines 'edge' as a new idea to trading that increases trading accuracy, then an edge did have to be discovered as well as developed. Ideally, an edge of an idea becomes a technical method or smaller portion of trading that is different enough from others' as to lower dependence on vague, personal, experience-only elements of trading and replace it with a well-explained, logically rational one.
It's a long road before a discovery is being exploited for what it's worth, in the context of others, highly similar ones in my case, along the way that, together, eventually handle any market/trading situation.
  • #11
  • Jun 9, 2010 6:20am Jun 9, 2010 6:20am
Quoting Hedginghog
System hopping is a common behaviour amongst many new and unsuccessful traders. Attached to this behaviour is most often the feeling of frustration, sometimes desperation. I believe the inputs to the behaviour most often relate to several false assumptions, which need to be questioned and systematically unravelled if a trader is to achieve consistent success in the markets. These assumptions include:

- the belief that money can be made quickly in forex and other financial markets

- the belief that the acquisition of a "good system" is the...
Great post which is insightful. Too many people just dont get it. They believe that in order to be successful they need to develop or get into the latest 99% winner thread, holy grail, hey everyone look at me I achieve 5% per day with this or that. The result is the system hopping that happens amongst everyone at one stage. You move from that mentality only when you mind shifts. You have a few sequences of AH HA moments. You move from the belief that you can make this much every day of the week, every week of the year and that each night you can sleep soundly while the market fills your pockets.

Too many people are under capitalised and have dreams bigger than there bankroll, which generally leads to the overtrading, over sized risk and slopping trading that provides them with a leak in there capital.

Now for my motivation

It is the thrill of making money and seeing an account grow without the daily grind of doing something manual in ridiculously hot weather (though you do get a kick arse tan). It is the battle between your emotional states that can make you sweat from time to time. IT is the outlook of a better life that very few jobs or businesses can offer. That is my motivation. My trading is quite boring even from a part time POV but when I make 3-4% I get a little smile.

Find something that works, has worked for a long time and keep at it. That does not mean that it has worked every day for the past 10 years. If you think you need to have something that works every day then you just dont get it. If over the expanse of time, through recession, calamities and booms you get a positive outcome that beats you interest rate at your local bank then you have something to work with.

Razor
  • #12
  • Jun 9, 2010 3:56pm Jun 9, 2010 3:56pm
To never lose...which is impossible.
Until a trader views trading the same way a casino makes money only then will they become successful.
  • #13
  • Oct 9, 2012 8:33am Oct 9, 2012 8:33am
To get rid of fear you should develop the system that will fit you and bring you money and to avoid the fear of the loss invest the money that won’t affect your budget if you lose it. There is no sense to be afraid of the loss because everyone looses sooner or later. If you lose a small amount of money (yeah its not cool) but next time you will be more careful and you wont repeat the same mistake, this is how you gain the experience.
  • #14
  • Oct 14, 2012 10:46am Oct 14, 2012 10:46am
Motivation is always important in forex trading. Because here we can face continuous losses and which make us frustrated. So we have to motivate ourselves to forget the losses, to create something new and to regain our confidence.
  • #15
  • Oct 14, 2012 4:55pm Oct 14, 2012 4:55pm
Quoting seykota
Hi,

I try to understand why newbies in forex are switching from one system to an other.

After talking to newbies and check what's motivate me in my trading, I found one difference.

I'm motivated to trade the perfect trade. Like David Beckman wants to make the perfect free kick and practice on it.
Newbies are motivated to make lot of pips and money.

Even if my trades get close < 0 I can get happy / motivated to continue trading because this trade was better than the one some month / day / hour ago. This quest to make the perfect trade...
The perfect trade, we all want that..it's nice to know that you're motivated to stick around for the same..we all want the perfect trade and yes, we will prob face a few losses, the key is in being patient.
  • #16
  • Oct 9, 2020 4:46am Oct 9, 2020 4:46am
Making profit from forex market is not so easy. You need to motivate yourself to make better in this platform.
  • #17
  • Oct 12, 2020 1:39pm Oct 12, 2020 1:39pm
Quoting seykota
Hi, I try to understand why newbies in forex are switching from one system to an other. After talking to newbies and check what's motivate me in my trading, I found one difference. I'm motivated to trade the perfect trade. Like David Beckman wants to make the perfect free kick and practice on it. Newbies are motivated to make lot of pips and money. Even if my trades get close < 0 I can get happy / motivated to continue trading because this trade was better than the one some month / day / hour ago. This quest to make the perfect trade gives me momentum...
It is important to remember that the most perfect trade is the trade that you figure out on your own, using the system or combination of strategies and tactics that makes the most sense for you to have ultimate success. Every trader learns to trade their own skill levels and their own learning style. Those two things combined equals a completely different experience for each successful trader. Making each trade more and more successful, comes from duplicating what works and eliminating what doesn't! Learning from our mistakes is one of the hardest things a mature adult can do. Having a periodic losing trade keeps the real traders trading and makes them become the EXPERIENCED traders! Enjoy!!
  • #18
  • Oct 12, 2020 6:29pm Oct 12, 2020 6:29pm
There are many trading sites from which it is possible to motivate yourself. As a new trader, I have learned a lot from Forex Factory. That education has motivated me a lot.
  • #19
  • Nov 4, 2022 8:47pm Nov 4, 2022 8:47pm
One should always have a positive approach and attitude towards trading, taking small breaks helps one to stay motivated. Watching the journey of expert traders gives me immense motivation to perform well.
  • #20
  • Nov 15, 2022 12:23am Nov 15, 2022 12:23am
There is no “get rich quick” pattern or a trade in forex. Yeah you might be able to get lucky here and there but most of the time it’s hard work, even if it is not a physical one. It is mentally challenging. My motivation is: have a time to myself. Yeah I know it is a 24/5 thing but it is better than working from 9-5 and making the same low amount. Trading itself keeps me fresh and motivating.
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