The having to make money mindset

You don’t have to do anything in the market. Remember nothing will start till you decide it should, and it goes on for as long as you allow it

Trading from the state of “I have to make money” or worse “I have to make X amount” on a particular trade or over a series of trades will cause us to narrow our focus to that. Instead of being fully aware and being in the present moment. It’ll take us away from the things we need to do in the present moment. Like recognising when it’s time to exit a position because the move is over.

This state of mind can also easily trap us into the mindset of “I know that this trade will be profitable, otherwise why would I put the trade on in the first place”. Causing basic trading errors like not predefining risk, because what’s the point of predefining the risk if we “know” the outcome of the trade before placing it.

Your job as a trader is to recognise what you define as your edge, and execute. Truth is even if you can see your edge in the market. You still don’t HAVE to do anything. Just as when it turns out that the trade is actually a loser, you don’t HAVE to do anything to continue to lose money.

If your focus is too much on the goal. It will inevitably take you from the things you need to do to achieve your goal.

Sure our main objective when placing a trade or just generally as a trader is to make money. But we can’t trade from the state of mind of HAVING to make money. If we do, we’re setting ourselves up for a slap in the face.

Instead we need to be trading for the state of mind of.

“Okay I can see the pattern. This means there’s a good chance this trade will be profitable. But I know that potential will diminish at this price or for these reasons (stop loss, predefining the risk). I’m willing to lose $X to find out if this trade will be profitable (position size). If it works out in my favour, this point or reasons will signal to me the trade is over (profit target). I accept anything that happens after I place the trade including the possibility that I will lose money on this trade, because I know over a good enough sample size I have an edge that puts the odds in my favour. I don’t have to make a certain amount, I will make what I make”

If you HAVE to make $100 what happens if the market only offers you $50? Or if you HAVE to make money what happens when the market offers small losses? Are you going to reject those offers ? Ignoring what the market is telling you because you HAVE to make money or a certain amount? Well, it’s up to you.

You don’t HAVE to do anything and the market doesn’t have to do anything for you. You’re responsible for everything that happens in your trading account

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