Yup, it's that time of year again - the

one where we all look back and think

of the things we haven't managed to

achieve or habits we'd like to

change. We resolve to do better in

the coming year and state what we'd

like to change.

But I'll put it to you now that

unless you do something

different this time, this year's

resolutions will end in the

same way as all the rest -

they'll end in failure.

If you haven't managed to change

something you'd like to in the past,

then it's not for the want of trying.

You already know there's something

that you're doing that you really

shouldn't be. New Year's resolutions

are not New Year's revelations.

It's not like this is the only time of year

you're able to go on a diet, start to

exercise, quit smoking, stop breaking

your trading loss limits, make sure

you prepare for trading each day or

start that trade journal you know you

should.

But then the holiday break is one

where in one way or another, we

all take a step back from

everything and have the chance

to reflect on life.

So the New Year is a great

opportunity to make a fresh

start for many. You can see

this by the number of people

who actually start it with

resolutions.

When it comes to resolutions, sticking to them

is in effect an exercise in habit replacement.

The trouble with this is that the habits we form

over time become particularly engrained and

therefore can be troublesome to change. If you

are trying to change a habit you are pushing

yourself out of your natural state of equilibrium.

This is stressful enough as it is but there

are things which can make your

willpower crumble. One of which is trying

to change too many things at once - fail

at one and the whole ship may capsize.

Willpower is an emotional resource and

so it can be depleted.

Arguments at home, trouble at work or

even lack of sleep can all take their toll

and end up depleting our levels of

willpower. So when your willpower is

already low, what's the first thing that's

likely to suffer? You got it - things that

push us out of our natural equilibrium.

There is a tipping point where you know

you need to change. Often this point

does indeed come in the New Year. But

it also comes at random points

throughout the year. It could be after

seeing old friends, an argument with your

spouse or stepping on the scales for the

first time in a while!

But once you have the motivation to start

to make a change you need to make

sure you're going to be able to go the

distance. It's going to be something that's

in some respects unique to each

individual, but there are some common

themes which can help.

Apart from the obvious about

being specific about your goals

(actually probably the last step)

it's desire, passion and results

driven motivation that'll help you

sustain change.

Understanding more fully why you need

to change is a great motivator.

Researching the health effects of not

being a good weight or smoking/drinking

is a good start. As is identifying exactly

how much a particular trading habit you

know is bad actually costs you through

the cold hard data.

But there has to be a benefit to retaining

your new habit once you get there. A

new natural equilibrium must be forged.

Feeling fit and healthy, enjoying great

clothes or seeing a great income stream

is definitely a good motivation, but is this

enough?

Now here's the bit where you might

need to be a little creative - but if you

do it can be a powerful tool to create

a new natural equilibrium so you are

less likely to slip up. For example, it's

not so difficult to get fit if you already

know you love playing a sport.

But what if you don't? What if the thing

you're trying to achieve can't be

associated with a passion? Well you

need to get creative. If you don't like any

sport, perhaps you like photography and

then that can be your drive to get outside

and be more active.

What about keeping a trading

journal? Perhaps you're a whiz at

Excel - use that passion to create a

great journal and then fill it. Or

perhaps you're really competitive - so

seek out what the competition is

doing and then beat it.

Success is not always a

black and white thing. It can

be measured by relative

performance which is always

a variable thing anyway.

So if you're able to see general progress

and movement in the right direction, then

it's easier to maintain your focus and

you're less likely to abandon your goals

when you have a stressful period in your

life. Track your progress and you'll find it

becomes a motivation in itself.

Making big changes in your life and

work is never going to be as easy as

making a New Year's resolution. It

takes time and effort and moreover,

a bit of cunning in order to change

your natural state of being so that

you might maintain a new habit.

The chances are that if you make

New Year's resolutions you'll have

struggled to keep them before. So

why not make the resolution to do

things differently this year? If your

goals are worth achieving, I suggest

you do.