It might be a funny question to ask an option trader but trust me it is a legitimate one. When I work with option traders, I often ask them why they decided on options. Generally, the answer is a standard one that they want to make more money. But I like to drill down even deeper and find the real motive because in most cases there is a deeper reason.

You Will Do Better with a Reason

Just like many things in this world we live in, we do better when there is a motivating factor. Now don’t get me wrong, money is motivation. But if you look deeper, there are probably things that you would like with more money. To me, this can be an integral part of your option trading plan. I think every trader should have a goals section in their trading plan. Some of the motivating factors I have heard in the past have been sending my children to college, taking more vacations or in my case buying more wine. Visualizing your success is much easier if you have a specific goal in mind.

Here Is the Tough Part

Now that you have specified your motivation for doing well at option trading, how committed are you to achieving that goal? Having your goal in mind and visualizing that goal are great but not enough. Becoming a successful trader is not easy if you haven’t noticed. There are statistics everywhere about how many traders never make money consistently for lengths of time. Do you want to be one of those statistics?

Learnings How to Trade Options

Spending long hours learning about options is not necessarily the answer. Knowing what to study and what to focus on is the way to go regardless of how much time is spent. Study smarter not longer applies here. I often come across option traders that will sit in front of their computer all day long and sometimes on the weekend too. Is that really helpful? Learning the basics, writing an options trading plan, and following and evaluating both profitable and losing trades usually works better than looking for new opportunities when discipline is the real culprit.

Getting Motivated Trading Options

Have you ever heard the expression that sometimes you have to look in the mirror? Well that applies here as well. When I teach my daily option trading class, I often tell the traders that their homework assignment over the weekend is to stand in front of the mirror and proclaim “I am a risk manager first!” I tell them to say that 100 times in jest until it sinks in. This is the same principle as getting motivated and finding a real reason why you are option trading.

Finally

Finding your true motivation in life and as an option trader is imperative to your potential success and happiness. Option trading needs to be a part of your life that has an underlying reason for doing it otherwise it might be a long, unprofitable road ahead.

John Kmiecik, Market Taker Mentoring