Why do you want to invest and trade for a living?
Apart from the obvious financial benefits of doing so successfully, much like being an ‘entrepreneur’ or ‘influencer’ is seen as the new celebrity status, for many people, being able to call themselves a trader or investor massages their own ego.
But the truth is, if those are the only drivers behind your actions, you won’t last very long.
Winning the Perseverance Game
Investing and trading, much like entrepreneurship, is a perseverance game.
The initial period requires the most time and energy to kickstart – it’s where you’re learning the terminology, how the whole system works, and what tools you can use to start practising and succeeding.
At times it can be very overwhelming. Sometimes stressful.
And even when you find a system that works, you are still subject to the emotions of greed and panic that come with the ever-changing nature of the markets (i.e. all the ups and downs, market crashes, recessions etc.).
And the only way you can really persevere through these moments is if you have a very solid reason WHY.
Write Down your WHY
For me, my why is one ultimate reason and I think it applies to most other people too. And that is really in the end to create the freedom that you and your family want.
But just as you’ve likely heard before with S.M.A.R.T goals, you must be specific about what freedom actually means to you and why it is important for you.
➜ Related Article: What is True Freedom and Do You Have It?
A famous 1953 survey completed by Yale graduates found that only 3% of the graduating class had written goals and a plan for achieving them.
Twenty years later, these same students were again interviewed and they found out that the 3% who had their goals written down had in fact achieved most of their goals and had made more money than the other 97% combined who didn’t write their goals down.
They took time out to carefully map out a direction in their life.
And I highly suggest you do the same.
Here’s a few steps to get your started:
- Create your wish list – what’s everything you’ve ever wanted? Write them down.
- Estimate the time to achieve each goal and pick out 12-month goals.
- List out your top 5-10 goals
- Write down how you will celebrate when each of the goals are achieved
- Write down how you will seek support from your family and close friends
- Write down how your goals are congruent to what’s truly important to you
Patience Is Key
If you’ve done a great job with writing down your goals and becoming clear on your WHY, chances are you’re really excited at the moment.
In fact, you’ve probably already imagined how great it would be if you could get rich quick. While it’s a great feeling to have, and you feel very optimistic and motivated at the moment, unfortunately, it’s this type of thinking that gets many traders into trouble.
Newcomers typically often want to see success, or at least progress, right away.
But the thing that every newcomer must realize is that the most successful traders are patient. They understand that the stock market changes often, and if they wait for the right conditions, they can win big.
It may take a while but the opportunity will eventually arise and they will be poised to take advantage of it when it does.
If you are interested in learning more about these concepts, I recommend checking out the following blog posts that cover this in more detail:
- Self Control & Patience: Playing the Investment Waiting Game
- Patiently Waiting For Financial Success: The Effects of Wanting Instant Gratification on your Investing/Trading