Here we are at year’s end again, and it’s time to stop trading for a bit and reflect on our past year’s trading performance. With 2018 drawing to a close, many traders are looking ahead to next year in hopes of either replicating their success or starting off with a clean slate. Regardless of their performance these past 12 months, it’s pretty safe to say that the New Year brings with it hopes of a better performance in 2019.
To help you get started, we’ve compiled a list of resolutions that can help you improve your performance in 2019.
Learn and Master the Trading Strategy
NO ONE makes money in the markets without following a trading plan based on Trading Strategy. Trading plans is what make the traders money. They are the difference between winning, and losing.
First and Foremost If you do not have a strategy learn it by yourself or from traders who are already trading profitably. Learn and Earn should be Motto. Without Learning No once can Earn. In every professional career your First you Learn than only you are capable of Earning, Same goes true with Trading.
And if you trade a plan, you have to stick to it. Never Jump from 1 system to another one. If you are acting on emotion and making a decision other than what your followed strategy tells you to make, you are setting yourself up for disaster.
Trading plans are designed to keep us from making rash decisions are times when the markets are volatile, when emotions are high, when the vast majority of traders are panicking and making mistakes. This is when your chosen plan will keep you safe.
First and Foremost New Year’s resolution for this year would be, “Learn the Trading Strategy and Stick to it !”
Find a mentor.
A mentor can be experienced trader who can guide you and give you advice about trading. It’s hard to rise all by yourself. Mentors will make it easy for you. The good thing right now is the abundance of information in the internet. Even in social media, you can find potential mentors who will be willing to help and guide you.
Stop Looking For News and Not to see SGX Nifty and Dow in Night
I Have seen Many traders lose their night sleep looking at SGX Nifty Dow Jones. Without getting a Sound Sleep for 6-8 hours you cannot approach market with a Sound Mind. Focus should always be on Making a Plan and Stick to it.
Plan every trade
Every single trade you take should be carefully planned. Successful traders don’t trade on a whim. They assess the markets, anticipate upcoming events and monitor the trends to understand a solid entry point. Before you go long or short on anything, ask yourself if you planned your move ahead of time. If the answer is no, stop right there.
Define my loss limit
Losses are bound to occur in trading. This shouldn’t deter you from entering the market, but it should make you cognizant of how much you’re willing to lose before exiting a trade. It’s important to set an absolute limit on how much money you can afford to lose on any given position. This includes setting daily, weekly and monthly loss limits By leveraging these tools, you can avoid blowing out your account on one or two bad positions, or worse, going into debt.
Before I sign off today, let me just say it’s been a pleasure writing these articles for all my followers this past year and I sincerely hope I have helped many of you. I look forward to helping you guys even more in 2019.