Why do some people keep going while others give up?
The biggest difference is the type of motivation behind their desire to trade.
Intrinsic and extrinsic motivation in trading
- Intrinsic motivation: you do something because you enjoy it, without expecting a reward. In other words, the reward is in the process and the progress you make
- Extrinsic motivation: you do something to get a reward, such as money or praise. In other words, it's the carrot that keeps the donkey moving
From those two definitions, we can see that:
Intrinsic motivation is better at keeping you going when things get difficult.
You don't rely on external rewards to rekindle your enthusiasm. Doing the activity is enough.
If your motivation is mainly extrinsic, though, you'll reach a point when difficult periods stop you getting those rewards.
In trading, that means not making money.
And that's inevitable, because trading isn't just about winning. It's about losing too.
It's part of the game. You have to survive.
At that point, you'll lose the desire to keep trading.
Money isn't the best motivator
During my conversation with cognitive psychology expert Taha Mansour, he mentioned a scientific experiment carried out in the United States.
Researchers gave two groups of people a puzzle to solve.
One group was offered a financial reward. The other wasn't.
Which do you think performed better?
Ironically, the group with no financial incentive did much better.
Why?
Because money created pressure that killed creativity.
Trading is the same.
When you focus exclusively on profits, you forget to enjoy the process. You lose your ability to perform, innovate and keep going through difficulties.
Yet it's precisely that passion for the process that pushes you to give your best.
The aim is to enjoy it enough to want to do it again every day, without focusing on the financial result.
How to stay motivated in trading
1) Find meaning
To stay motivated in something as demanding as trading, you need to find meaning. You need to know why you're doing it.
Start by thinking about your personal values.
What matters to you?
- Freedom?
- Progress?
- Competition?
For example, my values centre on independence, both financially and in terms of being my own boss, and sharing what I know.
I want to work at my own pace on things I enjoy, while sharing them with other people.
That's what motivates me to trade every day, even when the financial results aren't there.
2) Redefine success
Another way to stay motivated is to redefine success.
Financial gains play a very important role in trading, but they shouldn't be your only measure of success.
I think you've got the idea, so I'll spare you the long explanation:
Success shouldn't be measured by the money you make, but by showing up at your screen every day ready to trade.
And even if you finish a session without finding a trade, that isn't a failure.
As the saying goes: "Not trading is trading."
Consistency and commitment matter far more than isolated results. Those results will become more consistent too, if you put in the effort and give yourself time.
3) Action comes before motivation
I also want to remind you that action comes before motivation.
Sometimes just sitting down at your screen, even when you don't feel like it, is enough to get you motivated.
Thanks to Taha Mansour for the explanations that helped me bring more science into this article.
