They say that money can't buy happiness, but it sure can buy a lot of things that make us happy. That's why it's no surprise that many new traders are eager to dive headfirst into the world of trading with the goal of making as much money as possible. But as any experienced trader knows, the market can be a fickle mistress, and the pursuit of profits can lead to some less-than-stellar outcomes. That's why it's worth considering an alternative approach: changing your goal from making money to simply surviving in your first year of trading.
When starting a new trading business, it's easy to get caught up in the excitement of making money. But often, this mindset can lead to overconfidence and risky behaviour that can ultimately lead to failure. That's why changing the goal from making money to surviving in your first year of trading can be a smart move. Here are some of the benefits of this approach:
1. It forces you to be more conservative
When your goal is to survive, you'll naturally be more conservative in your trading strategy. You'll focus on minimizing losses and preserving capital, rather than trying to hit it big with every trade. This approach can help you avoid risky bets that could wipe out your account and allow you to stay in the game for the long haul.
2. It helps you build discipline
Surviving in your first year of trading requires discipline. You'll need to stick to your trading plan, manage your risk, and avoid emotional decisions. By focusing on survival, you'll build the habits and mindset that will serve you well in the future.
3. It gives you time to learn
Trading is a complex and challenging field, and there's always something new to learn. By prioritizing survival over profits, you'll give yourself time to learn the ins and outs of the markets, refine your strategy, and develop your skills. This can be especially valuable in your first year, when you're still figuring out what works and what doesn't.
4. It sets realistic expectations
Making money in trading is never easy, and it can take time to build a profitable track record. By focusing on survival, you'll set more realistic expectations for yourself and avoid the frustration and disappointment that can come with unrealistic goals. This can help you stay motivated and committed to your trading business over the long term.
5. It reduces stress
Finally, focusing on survival can help reduce the stress and pressure that come with trading. When you're not constantly chasing profits, you can focus on making sound decisions and sticking to your plan. This can help you stay calm and level-headed, even in volatile markets.
In conclusion, changing the goal from making money to surviving in your first year of trading can be a wise move. It can help you be more conservative, build discipline, learn more, set realistic expectations, and reduce stress. By focusing on survival, you'll set yourself up for long-term success in the trading business.
