Jigsaw Trading Blog

Riding into the New Year: Breaking Resolutions Before They Break You

Written by Peter Davies | Dec 24, 2024 3:36:04 PM

 

It’s that time of year again. For many - the Christmas decorations are up - for all, year’s last trading days are winding down, and the familiar pressure of New Year’s resolutions loom large. There’s something about the holidays that makes us want to start fresh. A new year, a new you - or so the promise goes. But for most of us, the excitement of resolutions fades as quickly as holiday leftovers. Why? Because the way we approach resolutions is fundamentally flawed.

Picture this: a biker in Santa gear roaring down the highway, navigating twists and turns with confidence. That’s the image of someone in control - someone who knows how to balance ambition with reality. Now contrast that with most people’s resolutions: unrealistic, rigid, and doomed to fail at the first bump in the road. If you want 2025 to be the year you make real progress - in trading or in life - it’s time to ditch the all-or-nothing mindset and embrace a smarter approach.

Let’s break it down.

The Resolution Trap

 

New Year’s resolutions often fail for three main reasons:

1. Unrealistic Expectations

We love big, bold goals, don’t we? Lose 20 pounds. Double your trading account. Wake up at 4 a.m. every day and dominate life. These resolutions sound inspiring - until reality sets in. Life happens. Habits don’t change overnight. And when you inevitably fall short, the disappointment is crushing.

Take trading as an example. How many times have you told yourself, “This year, I’m going to be disciplined. No more revenge trading, no more blowing up accounts.”? It’s a great sentiment, but without a realistic plan, it’s just wishful thinking.

2. The All-or-Nothing Mentality
Another common pitfall is rigidity. Resolutions are often framed as absolutes: “I’ll never eat junk food again” or “I’ll follow my trading plan perfectly every day.” The problem is that life isn’t black and white. Slip-ups are inevitable, and when they happen, the all-or-nothing mindset kicks in.

You skip one workout, and suddenly, the whole fitness plan goes out the window. You take one impulsive trade, and next thing you know, you’re on a losing streak. It’s the “breaking the seal” phenomenon: one crack in the dam, and the floodgates open.

3. No Room for Progression
Most resolutions lack a progression plan. They’re static, one-dimensional, and focused on the end result rather than the journey. Few people think about starting small, building momentum, and celebrating incremental wins along the way. Instead, it’s all about the big finish - which rarely comes.

 

A Smarter Way: Progressive Resolutions

 

If traditional resolutions are a one-way ticket to frustration, what’s the alternative? Enter progressive resolutions.

These are goals designed to evolve over time, with built-in flexibility and milestones to keep you on track.

Here’s how it works:

 

1. Start Small

Big goals are great, but they’re made up of small steps. Want to become a better trader? Start by reviewing your trades daily for a week. Then expand to weekly performance reviews. Over time, these habits will compound, leading to meaningful progress.

Think about it like riding a motorbike. You don’t start at full throttle; you ease into the ride, shifting gears as you gain momentum. Progressive resolutions work the same way.

 

2. Focus on Systems, Not Outcomes

The best goals are process-oriented, not result-oriented. Instead of saying, “I’ll make $10,000 trading this year,” focus on actions you can control: “I’ll stick to my trading plan 90% of the time” or “I’ll limit my losses to 1% per trade.”
By focusing on systems, you’ll build habits that lead to success - without the pressure of arbitrary milestones.

 

3. Allow for Setbacks

Setbacks aren’t failures; they’re part of the process. When you miss a goal or slip up, don’t throw in the towel. Adjust, learn, and keep moving forward. The road to success is rarely smooth, but it’s the consistent effort that counts.

 

The Trading Manifesto: Guardrails for Success

 

Here's the thing - at Jigsaw Trading, we know progress isn't about flashy signals or quick wins. It's about discipline, structure, and having the right tools. That's why we created the Trading Manifesto - a practical guide to keep you on track.

Look, the Manifesto isn't a magic bullet. It won't make you profitable overnight. But it will give you the guardrails you need to avoid distractions, focus on what matters, and make steady progress toward your goals.

Here are a few principles from the Manifesto that align with progressive resolutions:

  • Review and Reflect: Success comes from understanding your strengths and weaknesses. The Manifesto encourages regular trade reviews to refine your strategy over time.
  • Focus on Fundamentals: Just like resolutions should focus on habits, trading should focus on core principles like risk management and execution.
  • Stay the Course: The Manifesto helps you avoid the “shiny object syndrome” that derails so many traders. Stick to your plan, even when the going gets tough.

 

 

Practical Tips for the New Year

 

Whether you’re a trader or just someone looking to make positive changes in 2025, here are some actionable tips:

1. Set Realistic Goals
Be honest about where you are and what’s achievable. Instead of saying, “I’ll become a full-time trader this year,” aim for incremental improvements, like achieving consistency in demo trading.

2. Break It Down
Divide big goals into smaller steps. For example, if your resolution is to lose weight, focus on one habit at a time: cutting out sugary drinks, adding a daily walk, or prepping healthy meals.

3. Build in Flexibility
Life is unpredictable. Give yourself room to adapt without abandoning your goals. If you miss a workout or a trading review, don’t let it derail your entire plan. Pick up where you left off.

4. Celebrate Small Wins
Progress is motivating. Every time you hit a milestone, take a moment to acknowledge it. These small victories build momentum and confidence.

5. Get Support
Accountability is powerful. Whether it’s a trading buddy, a coach, or a community like Jigsaw Trading, having someone in your corner can make all the difference.

 

The Festive Spirit of Progress

 

The holidays are a time for reflection, gratitude, and celebration. Whatever your race, creed or religion. But they’re also a reminder that change doesn’t happen overnight. Santa’s sleigh might fly in a single night, but the preparation takes all year. Our biker in Santa gear knows this too - success is about consistency, not speed.

As we head into 2025, let’s leave behind the pressure of unrealistic resolutions and embrace a smarter approach. Start small, build momentum, and keep your eyes on the road ahead. And if you need a guide, the Trading Manifesto is here to help you navigate the twists and turns.

This year, don’t just ride hard - ride smart. Download the Trading Manifesto and make 2025 the year you take control of your journey.