10 Resolutions of Top Traders
10 Resolutions, Every day we should all strive to become better traders. Here are 10 ways to help achieve that ambition:
1. Do not feel compelled to always have a trade on or to trade everyday. Capital preservation is the key to successful trading and sometimes that just means waiting when the odds are not in your favour.
“Throughout all my years of investing I’ve found that the big money was never made in the buying or the selling. The big money was made in the waiting.” Jesse Livermore
2. Develop your own proven trading system – accept that losing trades will be part of that system.
3. Do not let emotions influence your trading decisions.
4. Trading is a business, be strategic and logical.
5. Learn something new everyday that will help to maintain or increase your edge.
6. Keep a trading journal and review why your actual trades vary from your trading plan.
7. Do not fight the market, it’s easier to run with the wind than against it.
8. Always trade with a stop loss and never move that stop further away or remove it completely. Do not allow a day trade to become a long term investment.
9. Become an expert, know your market inside out. Be it options, futures or an individual stock – you should strive to become the World authority in it!
10. The market will rarely do what it ‘should’ be doing. Instead focus on what it is doing.
It’s getting close to the end of the year and it’s time to start thinking about your new year’s trading resolutions. Just like in your daily life your Forex trading also needs to reexamined every once and awhile to get back on track. These are five resolutions to should implement right away if you are not doing them already. No trader is perfect and we can all continue of Forex Training day to day.
Don’t gamble with your money!
Say no to uncontrolled trading! Trading currencies is not like a casino in hopes of getting that one time payoff jackpot. Of course you can do that but don’t be surprised you find your account down to zero in just a few days. If you want to gamble… go to Vegas! It’s more fun there! If you want to make profit… trade Forex in a systematic way! Remember trading is a business and needs to be treated as such.
Don’t revenge trade!
Losing is part of trading and if you can’t handle that, don’t ever trade period! Always attempt to stay relaxed, calm, and move on. Don’t hit the entry button over and over and put on as many positions to average yourself to break even and hope the market will turn and you will suddenly make a lot of dough. The majority of the time this will result in you getting yourself into a place where you can’t dig yourself out of.
Manage your money management!
Do you want to be trading for a long time? If so you need to exercise control and good money management. You need to set out each day with an amount maximum which will trigger you to stop trading for the day. Manage the money like it was your life savings and don’t risk more than 1-2% of your account balance in any on trade!
Be flexible with your thoughts!
What do I mean by this? The market is very squirrely and random with a lot of noise. You just don’t know what is going to happen next, so sometimes it is best to just adjust and be flexible. Don’t get fixated on a certain direction in the market and continue to fight if the market is telling you otherwise. To be profitable in the long run you have to listen to what the market is telling you.
Write everything down – journal it!
I hate to take the time to write everything down like some high school girl with her diary, but you must! It will teach you lessons which you will repeat if you do not take the time to review your behaviors. You want to keep track of what’s working and what’s not in your trades and the best way to do this is by writing it all down after the trades are completed. Write down everything! Your trade ideas, what happened, what you did, how you acted and how you felt about it.
These are just a few to think about for the next year. If you have not implemented them yet then hurry up and do so, they will change the way you look at Forex trading forever. Click here for all your Forex Training needs.