The possibility of accumulating profits exists in the marketplace. A trader can move up the ladder of financial growth in a very short time by engaging the right keys in the financial market. But then, a reality stares most traders in the face; when they find it difficult to accumulate profit over a period of time, instead, they end up losing what they have gotten in the marketplace.
Many traders have watched their trading accounts go up in flames, and are left to wonder what the real issue is and why they can’t progressively grow their accounts. In my view, in addition to fear which immobilizes the trader from making decisions based on perceived opportunities, poor self-valuation can also contribute to this problem.
But what really is self-valuation?
You Give Yourself Money, Not the Market!
The market really does not give you money. You give yourself money based on your ability to perceive opportunities and take advantage of them. Your self-valuation is simply the belief you have on how much you are worth. This belief is reflected in all spheres of our life and in how much we demand from life in terms of quantity and quality.
Your self-valuation stands as a regulator of how much money you can give yourself per trade and over time. Your ability to accumulate profit, whether on a single trade or cumulatively with several trades over time, is a function of your degree of self-valuation.
Many traders don’t even recognize the extent to which self-valuation can affect trading performance. In fact, this singular psychological factor can determine the overall success of a trader and also override other psychological strengths a trader can have.
The Rat Race of a Poor Self-Valuation
In essence, regardless, of your depth of insight into market behavior and how much skill you may have in spotting opportunities, you will only give yourself the amount of money that corresponds with your level of self-valuation.
If you find yourself having difficulty executing a trade even after spotting a trade opportunity, it could be that you are immobilized by fear or are struggling with a belief system or a value system that says you don’t deserve that amount of money.
Sometimes, we find ourselves suffering from a wrong belief system passed down to us from our homes or societal foundations. A child could grow up in an environment that indoctrinates low self-esteem into his mind and over time, we see the effect of this belief system in the quality of his expectations through life.
In the marketplace, this trader will be forced into the awareness that he has assumed a wrong thought pattern. This belief system must be replaced with a healthy one that says he deserves the best and can attain any height of success if the price is paid.
As long as poor self-valuation is in place, the trader will continue in a rat race of immobilization, leading to missed opportunities and frustrations in the marketplace.
Featured Image Credits: Forbes
