[brownsfan019]

Good thread tor!

All traders, esp those new to trading, could learn a lot from the info we share here.

Here's my basis for doing what I do before I explain the specifics - I found that much of what I learned and was taught while a stockbroker translates very well into full-time trading. As a new stockbroker, you are taught that many, many hours, months and years of hard work are required to get the elite level (just like trading). We were also taught that if you follow your 'plan' you NEED to reward yourself, regardless of the commission screen (or P&L). My goal as a new broker was to contact 25 people per day and offer them some sort of investment service. I was taught that as long as I did this, the commissions would soon follow.

And you know what? They were right! My first month I made $60 in gross commissions. I could not believe I was working 10-12 hr days and took home a whole 60 bucks gross (good thing they also paid us a monthly salary for 12 mo's). But you know what? I stuck with the plan and each and every month that number increased till I got the point where it was a matter of much $$$ could I make that month...

And towards the end of my tenure as a broker, I just laughed when I thought about the tough times of working all day and all week and making very little.

What does this have to do with trading and rewarding yourself? Everything.

As long as you follow your plan, you need to reward yourself, no matter how little it may seem now. You have to program your brain to think that if you just follow ABC then you will be rewarded with XYZ. Just like training a dog - as soon as your dog realizes that it gets a treat when it shakes hands, it will shake hands any opportunity it gets. I know, that's a very simplified explanation, but the idea holds true.

Here's where I think many traders fall short - as an individual trader, most do not have that structure in place (like a corporation) that tells you over and over again to just follow the plan and you will make money. None of us have that luxury. And had I never been a broker, I probably would not see the difference either. I had so many tough days as a new broker and when I called another broker, went to training, etc. it was drilled into my head to just keep doing the work and the $$ will come. And it did. Traders just do not have that service available at all b/c 1) many doubt their trading systems to begin with and/or 2) if it does work, many aren't sure that it does b/c there is no reinforcement.

It's a very tough situation in my opinion. If you do not come from a sales career, bridging to trading is difficult in my opinion simply b/c you do not have the knowledge and experience of what is expected of commissioned sales people. And trading is no different - we are not working for commissions, but we also do not make a penny unless we do our job. And even if you do your job, you still may not make any money. That's a difficult hurdle for many.

Sorry that I digressed here, but I think the topic is a great one tor and everyone needs to reward themselves for doing their job b/c no one else will.