My good friend and competitive body builder, Jack Lotter, inspired me to treat my trading account with the same dedication and persistence as he puts into his work outs.
A successful trader should take notes from a body-builders dedication!
A body builder’s lifestyle is nothing more than full on dedication! They follow specific eating plans, proven weight training programmes and cool down protocols. They keep strict discipline with their body building routines and follow a specific lifestyle routine to help achieve their dream bodies.
And just like a body builder has specific routines with their training, so should a profitable trader.
Every day, you should have a specific routine to follow when you’re looking for trades.
Choose a time when you’re not distracted, to search for high probability trades every single day.
For example, every night when I get home from work I load up my trading charts and carefully scan through my entire watch list. I do this to see, if any trades are lining up for tomorrow. Then set your entry, stop loss and take profit levels.
Make this a routine and you’ll see how your trading will be less stress full and easier to follow your trading rules. And you can carry on with your primary job while your money makes you money in the stock market.
Keep following this routine strictly and you’ll start to see great returns from your portfolio!
Lift heavier weights to become even bigger!
Sorry to say this but, if you want to be a HUGE body builder, picking up 2kg weights at the gym your whole life, isn’t going to get you far.
I’m the proof!
For the last eight years at the gym, I’ve picked up the same kilogram weights with careful technique, and nothing has changed. I’m still where I was, eight years ago!
Even with the right meal plan and correct sleeping routines, body builders push themselves and lift heavier weights. This way, they allow their muscles to tear and regrow even bigger and stronger than ever.
With traders, unfortunately you need to trade bigger to become richer.
WHAT? SO I HAVE TO RISK MORE?
No! Let me explain this with an example.
Let’s say you started off trading with R30,000 and you only risk 2% of your portfolio per trade.
This means if one trade goes against you, you’ll only risk R600.
Over the next nine months, you grow your portfolio to R39,000.
You need to see your portfolio for what it is, and not what it WAS. And so you must adapt to your new trading portfolio balance of R39,000, and not what you started off with (R30,000).
And nothing else changes! You must still follow the 2% rule where you’ll risk R780 per trade (R39,000 X 2%)… When you risk more, you need to buy more which means, your potential winnings will be much bigger.
This way you can gradually grow your portfolio as fast as a body builder builds his torso!
Top body builders don’t over train and you shouldn’t overtrade!
Professional body builders, as much as they push very heavy weights, know their limits.
They know when to rest, number of hours they need to sleep and the days they should take off training to make them achieve their dream body goals.
Traders might not train, but they do trade. And over trading is probably the biggest reason for a trader to go bust.
The trick is to not have too many positions opened at once. You never know when there’ll be that next financial crisis, where you’ll bank losses after losses.
As a trader, you should never have more than 3-4 trades opened at once. This way you’ll still have a comfortable amount of money you can risk. And you’ll feel less stressed knowing, you only have a few trades to keep an eye on.
You can clearly see that if you apply the mental focus, strict discipline and lifestyle of a competitive and professional body builder, you too can beef up your trading success BIG time!
Always remember, “Wisdom yields Wealth”