Trading can be a stressful and challenging activity, and it requires a lot of discipline and focus to be successful. However, many traders forget to reward themselves for their hard work and achievements, and this can have a negative impact on their trading psychology. In this blog post, I will explain why it is important to take the time to celebrate your successes in trading and how it can help you stay motivated and focused.
The psychological benefits of rewarding yourself in trading
Taking the time to celebrate your successes in trading can have a positive impact on your trading psychology. It can help you stay motivated, confident and focused, and reduce the risk of burnout and negative emotions such as fear, greed or regret. Rewarding yourself can also give you a sense of accomplishment and pride, which can boost your self-esteem and improve your overall well-being. Do never forget: you are trading for profit. And profit in itself is no fun. The fun part comes when you spend that profit!
The danger of only focusing on virtual gains
Many traders make the mistake of only focusing on their virtual gains and losses in Excel sheets, and forget to enjoy the fruits of their labor in the real world. This can lead to a sense of detachment from reality, and create an unhealthy obsession with numbers and statistics. It can also make it harder to stay motivated and disciplined in the long run, as the rewards of trading can feel abstract and distant. Want to burn out? Keep on staring at that bottom line…
How to reward yourself in trading
First of all, always take profit on successful positions. Profit is what you are trading for — realized profit. I am not saying to close out winning positions too early, I am saying to take partial profit to treat your soul. Then use that profit to reward yourself. Rewarding yourself in trading doesn’t have to be extravagant or expensive. It can be as simple as taking a break, going for a walk, or treating yourself to a nice expensive meal or drink. However, it is important to choose rewards that are meaningful and enjoyable to you, and that reflect your personal values and goals. Some traders may prefer to reward themselves with material goods such as a watch or a gadget, while others may prefer experiences such as a holiday or a cultural event. The key is to find a balance between short-term gratification and long-term sustainability.
The importance of gratitude and mindfulness
In addition to rewarding yourself, it is also important to cultivate a sense of gratitude and mindfulness in trading. This means taking the time to appreciate the good things in your life and in your trading, and to focus on the present moment rather than worrying about the future or regretting the past. Gratitude and mindfulness can help you stay grounded, centered and resilient, and improve your overall well-being and performance in trading. Lots of trainers are telling you to focus on your mistakes, learn from your mistakes etc. I am saying that success is not made of mistakes. Know when you make a mistake, learn from your mistakes, leave them behind and focus on your successes. This is the only way: forward.
Rewarding yourself in trading is not a luxury, but a necessity for your psychological and emotional well-being. By taking the time to celebrate your successes and enjoy the fruits of your labor, you can stay motivated, disciplined and focused, and reduce the risk of burnout and negative emotions. Remember to choose rewards that are meaningful and enjoyable to you, and that reflect your personal values and goals. And don’t forget to cultivate a sense of gratitude and mindfulness in trading, to stay grounded and resilient in the face of challenges and setbacks.
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