BarroMetrics Reviews: Why Do So Many Traders Fail?
Since we are starting the new year, I think it’s appropriate to review why so many traders fail.
Traditional reasons would cite lack of discipline (lack of a Winning Psychology); lack of a risk management set of rules; lack of a plan with an edge (lack of a proven set of trading rules). All of these reasons would be true. But there is a missing element.
If we want to succeed in trading, start with identifying why we want to trade. Find the reason that will motivate us to change our behaviour in ways that will achieve your goals. Changing our behaviour will be absolutely necessary if we want to succeed – behavioural change takes place in the physical domain; but to pull off permanent behavioural change, we need to make changes in the mental domain. This is why we need to identify the ‘why’ source of our goals.
This implies, of course, we set a Vision and a set of Goals for 2010.
By identifying a ‘why’, we go a long way to identifying the unconscious beliefs and motivations that operate at the subconscious level and which prove to be barriers to our success.
By the way, we trade not only to make money: making money is just the surface reason.
Of course I want to make money from my trading – but the question we need to ask ourselves is: why trading? We can make money from so many other activities. The answer to this question will start the process of identifying the most critical element for our trading success.