In today’s article we’re going to be discussing finding your why as a trader, its importance, and how ultimately trading is about financial freedom and independence. Most if not all traders get into this business because it seems like a lucrative way to make money, but it goes much deeper than that.

Trading, like any other business is difficult, but has it’s clear perks over other ways of making money. Most people tend to favor the stability of a consistent paycheck at a job, but jobs have their own drawbacks. Jobs are touted as being predictable and secure, but in the past few years that seems to be less and less true.

Defining Your 'Why' in Trading

So why is it important to understand your deeper motivation for trading? Well, going into trading trying to make a quick buck or purely for the money is a good way to find transient motivation to start, but in the long run when you start to encounter challenges (and you will encounter challenges), you’ll find it hard to stick with trading. 

Defining your why in trading is important because it plays a big role in your commitment to the business. This isn’t just limited to trading. Ask any successful business owner why they got into business, and stuck through thick and thin. 

At the surface level, most people want to make money because they are looking for a way to achieve financial independence. The ability to not have to work a job, the freedom to dictate what you want to do with your life. Money buys freedom. 

Finding a deeper and more personal why is important because it’s what’s going to keep you going when things get really tough.

Breaking Down Financial Independence as a Core Motivator

To help inspire you to find your core motivation or “why” I’m going to share some of the reasons why I personally like trading. I used to work for an IT company at a role that compensated me well, but eventually I left my job and started my own IT consulting business and that opened my eyes to the possibility of uncapped earning potential. I was making more money, for less work and got to see a clear relationship between effort and profit.

As for why I got into trading, it’s the same reason I decided to get into consulting rather than working a standard (albeit well paying) job. 

My Personal Whys:

• I wanted freedom to spend more time with my family, be around my kids, and watch them grow up.

• The freedom to spend more time on my hobbies including playing competitive football.

• The financial freedom to be able to provide for my family, so my wife doesn’t need to work if she doesn’t want to.

• The financial freedom to invest in other businesses and pet projects in order to build more wealth.

It can be super simple. I never wanted lambos or luxury goods. Do I like sports cars? Sure, but wanting to look cool and own a hot sports car is not a good “why” if you ask me. If you can shift your mindset to seeing money as a tool to unlock the things you truly want in your life, it becomes a lot more meaningful, and if it’s more meaningful, the harder you’ll be able to work when it comes to learning how to trade, because you have a clear vision of what you want.

Setting Goals Aligned with Your Vision of Independence

Setting goals are great, but setting goals that align with your vision of financial freedom and independence are even better. Personally, I think that setting goals and working backwards to figure out the rough steps you need to take is the best way to go about it.

Notice I said “rough steps”. Being too rigid in an exercise like this doesn’t make a ton of sense because the reality is that things rarely go as planned in life. There will be setbacks, there will also be surprises (good and bad). 

Another thing that people often do is set unrealistic goals and end up just sapping their motivation when they fail to hit their milestones. Whether their goals are too big or the timeline is just unrealistic, this is a great way to create cognitive dissonance and frustration that will make you want to quit.

So keep it simple. Write down your whys, get clear about them, set realistic goals that align with those whys, and make clear and concise steps working backwards to achieve those goals.

Staying Focused on Your 'Why' Through The Challenges

Lastly, let’s discuss why defining your “why” is so useful. When you inevitably hit a roadblock or difficult challenge, having your why and your goals clearly defined are the best way to power through them. 

That’s not to say that taking breaks or resetting isn’t another useful tool for getting back on track, but having things clearly defined in your head can help neutralize or at least lessen the stress you’re experiencing when you’re in the thick of things.

When you’re clear on what you want, challenges become obstacles to overcome, not roadblocks that stop you in your tracks.

The whole point of this is to articulate and define your purpose and your goals so you can stick it out and do all of the work that’s going to be required to become a proficient, profitable trader who is financially independent.

That’s all for today, hope this helps you guys find your “whys”.

-Brian