In life, just like with trading, it is usually that which is easy and entertaining is not what gives the greatest reward. In almost all aspects of our lives, we know usually what we should do, but very rarely do we do it in the degree that would lead us to the results we would like to achieve.
At the university, we know that it is possible to get better results if we study a few additional hours. We know that by working out just 30 minutes daily so we can faster get in shape. Usually, we do not do these seemingly beneficial things and we prefer to meet our friends for a drink after work, watch the latest episode of Lost, or just surf the net for hours.
In the trade entry, the same principles are in force. We know that we could have a little more time during the weekend to write a trading plan and do a market research. To keep a detailed handelsdagbok and study our past trades would help tremendously and we know it. Even if all these things would take a short time, we make them still not.
Why do we like to predict? – Immediate reward vs. Delayed reward
After having engaged in such activities (which t.ex. tv, an evening with friends or funny clips on the web), we receive an immediate reward and a feeling of satisfaction. However, the gymnasium or the studies are not immediate reward – it is ”boring” and it requires active effort. The positive effects of these ”boring” tasks take longer to show up, and we see thus them not as valuable when we decide what we should do. But the reward for measures that require active självöverskridande compensates to a large extent the things that we normally do.
The same applies with trading. We prefer to read in the trade forum, to hunt for new trading methods that promise a lot of money quickly. To try a new EA or handelsrobot is exciting and you do not need much expertise to download an EA. Thus, spend most of the traders of its time after these immediate rewards, which have small benefits for their long-term success as a trader. We also deny the fact with a disciplined approach that can (almost certainly) help us to improve our trading, because we do not want to spend the ”effort” that comes with it.
How do I get my weaker I?
Unfortunately, there is no easy way out. You just have to do it.
Check yourself and be honest with yourself:
How long have you been trading? How is your progress so far? Report your actions to your goals, or are you following still the fast way that has led you to where you are now? Where will you be on 1 or 2 years if you just continue as you are doing now? The following graphics confronts you with the common mistakes and areas where traders tend to delay. Although it may seem too confrontational at first glance, it is usually the fastest way to get a clear understanding of your current status and in order to correct your path.