A new year always excites everyone.It’s probably pretty safe to say that there is no such thing as the perfect trader. It’s time for the TRADERS to make TRADIN GOALS
With the Hindu NEW YEAR , or Samwat 2079 around the corner, many people begin to think of ways they can improve themselves in the coming year.
I’ve always loved DIWALI and enjoyed making plans for the next year. This time also I’ve made a few resolutions. Professionally, this year I’m planning to expand my team, become more active on Youtube and continue growing my trading account repeating the sucess of last year.
In this post, we are going to discuss seven powerful new year resolutions for TRADERS. All these resolutions are designed to make you a better TRADERS
Invest on Trading Education:
To become Doctor Engineer CA or master any other profession you need to study and master the concept.But trading is only profession in world where traders enter without any knowledge with small amount of money in account, lose money due to lack of knowledge and than blame market for their loss. “Trader should be responsible for his/her losses.” Be accountable to yourself and do not give excuses. So If you feel you are not having proper knowledge,invest money on your trading education and stop getting fleeced by market.
Have defined loss limits
Losses are a fact of trading. Unfortunately, those losses can come in a string for any number of reasons. Maybe the market just has been going against you, or maybe it is time to reevaluate your trading strategy. In any case, knowing when to step away from the trading desk sometimes can be the best thing for your trading account. Having defined daily, weekly and monthly loss limits can help to keep you trading for another day.
Impatience and Anger:
Wait, take your entry signal when it is time and not based on your emotions. Do not get mad at yourself. Learn from your mistakes and move on. Every mistake gets you closer to learning what you need to do to become consistently profitable. Unsuccessful traders lack self-discipline and patience. These are two qualities that I believe are essential to becoming a successful trader — especially a successful day trader.
Maintaining Trading Journal:
Trading is a business and like a good businessman we should keep all records related to it and all the more so because a successful trader has to first know himself better to trade better and he/she can do so only by keeping records like a trading journal, a psychological journal recording thought process, taking screenshots of traded charts, etc.
The most important “first step” is to set realistic goals. It makes no sense to set yourself up for failure by setting a goal that it unlikely to be achieved. Many of my Students during the training session have Goal of making 50-100% a month but during course of training we try to reflect the reality and bring them to very very close to the reality and helping them succeed.
Do not set a goal to reach a specific profit for the year. Those new to market will most likely set a profit goal of 30% to 40%. Can such profit be achieved? Of course it can, but no one knows ahead of time what kind of markets we will see in 2016, so such a resolution might very well be doomed to failure from the start
We could see a huge bull market, or a bear market. Or we could continue sideways.
So here is a more realistic profit goal. One that can be followed with reasonable expectations of success.
Promise to stick to your chosen trading strategies, so that you can make as much profit as possible, given what year 2016 offers us.If you do not have trading strategy please work on that before plunging yourself in market.
This is realistic. You will make as much as you can, depending on what the markets offer us.
Enjoy the process
When you take out the chase of money in the process, trading is quite enjoyable. And interestingly, those who manage to enjoy this process, they end up becoming succesful trader.
So, instead of blindly chasing money, which would inevitably leave you stressed, burned out and fatigued, shift your gear to enjoy trading.
So, instead of stressing over them for years to come, focus on enjoying the experience. It would automatically make your new year so much easier and less hectic.
A trader can hugely benefit by keeping all or even one of the above resolutions. So let’s see how many of us can keep the above resolutions, and more importantly, for how long!
Wishing You All A Very Happy And Profitable DIWALI !