Responsibility and respect are the bricks of a successful foundation, yet practically no one ever talks about it. Still, they represent two critically important components in our trading careers and, ideally, fortify every one of our actions.
When our trades are going well, many of us proclaim it to the world by making comments such as, “I’m becoming an incredible trader. I made a fifty-per cent on my account in the last six months!” Conversely, when we’re doing poorly and racking up the losses, we tend to blame it on anyone but ourselves: “I followed the advice in Sure-Profits Online Trading Room yesterday and took a big hit. The guy who gave the recommendation was nuts!”
It’s human nature to want to be right . . . to take credit when things are rosy and blame results on others when our lives turn sour. To maintain trading success, however, we need to take 110% responsibility for each decision that affects our account’s bottom line. Our wins, our losses . . . we are accountable for ourselves, to ourselves as relates to the outcome of each of our trades.
Respect for money, itself, is the second “R.” Do you treat your money carefully? Do you pay your bills on time? Do you spend thoughtfully? Do you throw crumpled $20 bills on your dresser, or wad them up in your pocket? Bills carefully organized in your wallet or money clip show that you respect money and the power it has. And, chances are, if you treat money carelessly in everyday situations, you may treat it without respect in your account.
Try consciously giving your money added respect. Don’t risk losing it by chasing trades, overtrading, or maxing out your account on a high-risk trade. Ask yourself, when entering a trade, if you are respecting your capital. As long as the answer is “yes,” your respect for your money will enhance your trading techniques.
Even if you already do so, focus on taking full responsibility for all your trading actions, and increase the respect you have for money. It’s an enjoyable exercise and one that may bolster your bottom line!