Introductory Training Course

Fl!P Your Thinking

module one

Motivation to Trade

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The Realities of trading?

Trading for any decent period of time is hard, really hard.

If you aspire to make a meaningful impact on your life and the lives of your loved ones through trading, it's essential to prepare for this challenge. A crucial first step is to reflect on your motivation to trade—and ensure that it will endure, as trading is not only difficult but can also be highly rewarding over time. Currently, the potential rewards are especially enticing, with many opportunities to trade seed capital, use virtual accounts to earn real money, or manage investor funds indirectly.

My own story


I believe my story may offer some valuable insight. Let me share a brief version.

In April 1998, I found myself in a challenging situation. I was in a conference room of a company I co-founded and managed, but the company was facing significant issues. After some deliberation, I decided to sell my stake and move on. I wanted to make a clean break, and trading equities in the emerging online trading world caught my attention.

I wasn’t interested in a minor shift. I didn’t want to stay in the industry I had been in for years. My interest in the stock market and, more recently, online trading had grown, and I had some funds from the sale of my shares. With the essentials in place, I decided to give trading a serious go.

I jumped in—and quickly discovered leverage and margin trading. Before I had even made any substantial profit, I decided I would stay the course until my entire capital was lost (which, of course, I didn’t want to happen). The risk of high leverage loomed large, but my determination was unwavering.

Fast forward 25 years, and my trading journey has been nothing short of unpredictable. What drove me was a deep desire to break away from the conventional challenges of running a business—no more personnel, partners, clients, or shareholders to worry about. I was attracted to the independence trading offered.

However, I soon realized there were significant downsides. Despite what we think we know about "the markets," figuring out the intricacies is far from easy. What do you trust? Which training is worth your time? Is the latest stock-picking software any good? Who's real, and who's a con artist? Even if they're legitimate, is their advice relevant to you? Questions pile up: Fundamentals or technicals? Global markets that are mysteriously interconnected—what does any of it mean?

Uncertainty can be overwhelming.

I didn’t want to just make a small shift and stay in the industry I had been operating in for a few years. I had a longstanding interest in the stock market and more recently at that time in online trading. Seeing that I had some funds for trading from the sale of my shares, I decided to have a close look. The basics were in place to potentially “make it work”.


So I just jumped!

I took to it like a fish to water and after I discovered margin trading and leverage, even before I made any real profit from it, I decided I will stay the course until all my allocated capital is lost. Naturally, I had no intention for that to happen, but with this leverage 'lion' (too high at the outset) lurking, one couldn't be sure.

There is absolutely no chance that I could ever have foreseen the 25 year road I had been on since. But I was really motivated to make a break and do something different. I quickly realized that one of the benefits of trading was that you just didn’t have the BS that comes with other businesses. BS like personnel, partners, clients, shareholders and the unimaginable amounts of stress they can cause if things begin to unravel / go wrong.

I also realized there are huge negatives. One being that although we know about “the markets” we basically have no clue what is what. And, it is not easy to figure out in a hurry. What to do? Who to believe? What training to take and pay for? Is this stock picking software worth buying? (I bought it. It wasn't.) Who is a con man? Who is real? Even if he is real, is it useful to me? Fundamentals? Technicals? Different global markets, apparently all linked in some mysterious ways. What does this or that mean? Is it important or not?

Uncertainty was overwhelming.

Your unique story

While I can't personally motivate you to trade forex, I can help you harness your own motivation and increase your odds of success. It begins with understanding what drives your interest in trading. If you feel a strong urge to make a significant change in your life, like I did, you're already in a good position. Intrinsic motivation can be a powerful force, especially when tackling the initial stages of learning and planning for trading. However, if you're not facing such a pivotal moment, you may struggle to find the same level of drive. A lack of deep motivation might be your biggest obstacle, and external motivations may not be enough to sustain you.

Motivated to Make Money?


Is Making Money Your Primary Motivation?

Let’s explore motivation through the lens of Daniel Pink’s book, Drive: The Surprising Truth About What Motivates Us.

Pink identifies three stages of human motivation:

  1. Motivation 1.0 – In ancient times, motivation was all about survival. People were driven by the need to find food, shelter, and reproduce. Though society has evolved, remnants of this basic survival instinct remain.
  2. Motivation 2.0 – As society progressed, the "carrot and stick" approach became the foundation of motivation. This extrinsic system of rewards and punishments has driven much of human development over the last two centuries.

However, Pink argues that while Motivation 2.0 helped society advance, it is increasingly inadequate for the complexities of modern life. Studies show that the "carrot and stick" approach often fails to optimize performance and can even cause it to decline. The promise of "more money" as a reward no longer motivates people as effectively as it once did.

So what does?

Enters Motivation 3.0

Building on the work of behavioral scientists, Pink introduces Motivation 3.0, which emphasizes intrinsic motivation—the desire to seek challenge, creativity, and personal fulfillment. This approach focuses on autonomy, mastery, and purpose, rather than external rewards like money.

Pink identifies two types of people:

  • Type X: Primarily driven by external rewards (like money).
  • Type I: Primarily driven by intrinsic satisfaction—the joy and fulfillment that comes from the activity itself.

When it comes to trading, this distinction is crucial. Type I behavior tends to outperform Type X in the long run. While a focus on external rewards can lead to short-term success, it's difficult to sustain over time. In contrast, people driven by an internal desire to master their craft and achieve something meaningful are more likely to thrive.

Motivation 3.0 is built on three foundations.

Motivation 3.0 rests on three pillars:

  1. Autonomy – People need control over their tasks, time, team, and technique. When you trade, autonomy means choosing your own strategy, timeframe, and trading approach.
  2. Mastery – Mastery is a mindset. It requires seeing your abilities as infinitely improvable. Mastery takes effort, grit, and deliberate practice. Importantly, mastery is an asymptote—you’ll never fully achieve it, but the pursuit itself is worthwhile.
  3. Purpose – Humans are naturally driven to seek purpose—something greater than themselves. In trading, this could mean seeking financial independence, creating a lasting legacy, or simply proving to yourself that you can master the markets.

Why do you want to trade?

When asked why they want to trade forex, most people I’ve spoken with over the years say something like, "to make a lot of money with a little money." This is a classic Motivation 2.0 answer.

Most people think of trading as a "carrot and stick" activity—trade well and you'll be rewarded with profits; make a mistake and you'll be punished with losses. This mindset fosters short-term thinking and is difficult to sustain. People are drawn to the promise of fast results, which leads to a focus on very short trading intervals and high leverage. But this approach can be a trap.

FL!P Your Thinking

To succeed in forex trading, you need, as Daniel Pink suggests in another of his books, A Whole New Mind. You must embrace a Motivation 3.0 mindset. With the right focus on autonomy, mastery, and purpose, you’ll be surprised at what you can achieve in trading over the long haul.

Summary of Module 1:

Trading is extremely challenging and requires long-term commitment and resilience. To succeed, it's essential to have a deep and sustained motivation, as trading offers the potential for significant financial gains but also comes with uncertainties. Drawing on Daniel Pink’s framework from Drive, traders need to transition from a Motivation 2.0 mindset (focused on short-term rewards and punishments) to a Motivation 3.0 mindset, which emphasizes autonomy, mastery, and purpose. Success in trading is more likely when it's driven by intrinsic motivation, allowing traders to thrive over time rather than seeking quick profits through risky strategies like high leverage.

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