How to “hatch” profit in trade and follow the trend

What are the forces acting on the trader at the time of being in a trade?

A trader is influenced by many factors: beliefs, thoughts, motivations, various fears and limiting beliefs to these fears. For example, fear of missing a trade, fear of entering and getting a stop, fear — what if I’m wrong, etc. (see the picture below).

Let’s imagine the specific problem of a person who cannot “hatch” profits. The situation looks like this: a trader is in a trade and the trade starts going against him. He takes less than the intended goal for which he entered the position. Thus, the goal that he set for himself does not coincide with the expectations about the price. The price, in turn, drops even lower, accordingly, panic begins and a button of the protective mechanism is triggered in the head — “take at least something”. While on his system most of the trades usually go to a higher level, but he takes it and closes it earlier.

Why does this happen? What processes are taking place at this moment in the trader’s head?

Let’s start with motivation. A person acts under the influence of 2 types of motivations — motivation “FROM” (motivation from a loss) and motivation “TO” (motivation to profit).

In this case, the outcome of events as a result of the impact of various motivations can be different:

• you earn
• you leave earlier
• miss the deal
• you make a deal not according to the system.

“FROM” Motivation

Most people have the most developed “FROM” motivation. What does it mean? So, for example, in 90% of cases, people start to play sports because something bothers them or something hurts. Accordingly, such people go in for sports in order to relieve pain, lose weight, relieve depression, etc. Such people move away from the negative, from what they do not like and from what they want to avoid. That is, for example, “leave your old job”, not “go to a new one”.

Motivation “FROM” is a very strong spring in life and really gives a lot of energy that you need to know about and use in your direction.

Motivation «TO»

In fact, the “TO” motivation in most people (70 per cent) is much less developed than the “FROM” motivation. What is “TO” motivation? This is the motivation to win.

If you take the same example with sports, then, for example, I have been running 10 km for more than 10 years several times a week. Why am I doing this and what motivates me to get out of bed every morning and go for a run? First of all, to feel healthy and energetic (motivation “TO”), secondly, so that my health does not deteriorate with age (motivation “FROM”).

The “TO” motivation would also work if I was running for a reason, for example, in order to run a marathon. Moreover, run a marathon for a certain time, and it is also desirable with a record, and it is also desirable to get a CCM in running, etc. Thus, if I did it professionally, it would not be enough to run 2 times a week and would have to increase the number of runs to 6 times a week.

This is the motivation “TO” (to something). By resorting to motivation “TO” we win, acquire, achieve, pay attention to what is needed, and not to what we want to leave. Such people “go to a new job” rather than “leave the old”, and their focus is on goals.

Let’s project “TO-FROM” motivation for trading.

When you are sitting in a deal, you are motivated by the “FROM” loss, that is, at least something to take away and the motivation “TO”, respectively, profit. But! Profit is still far away and therefore it is necessary to constantly develop profit motivation. How to do it? There is a specific exercise for this, which we will discuss now.

A technique aimed at developing habits and developing “TO” motivation in trading

You can read the article further here (Link to the original source)👉https://blog.thetrader.top/thinkorswim-follow-the-trend/.