How to take trading to next level ?

By | May 15, 2013

Nifty at 28 Month High Sensex above 20000, but how many traders went long in market in morning trade. Yesterday as i discussed Nifty gave whipsaw and we were expecting a explosive move. It came, but million dollar question did traders went long in morning or kept shorting at higher levels. Well i have emphasized many time of importance of trading system and trading psychology in trading profitably.Today let me share few more ideas which can help in improving your trading and taking it to the next level.

1) Trading is not about P/L, Money is a sub product of trading right. Trading is more about managing risk, how to take losses and how well can you mamge your emotional side. Self-improvement starts with self observation so you need to observe your both analytical and emotional side if you want to take trading to next level.

2) Improving risk-adjusted returns is as important for a long-term career as improving absolute returns. If you take half the trades and make 90% of your previous income, you’ve meaningfully improved. If you take twice as many trades and make 110% of your prior income, you’ve moved backward;

3) Learning to diversify your trading (and income stream) can be as important as improving your core trading. Diversification can be by market, by strategy, by time frame, or by some combination of those. Trading in multiple market can help in sense suppose one market is not moving you can concetrate on other market/ financial instrument to get the best return on your trading account.

4) Many times, the best improvements come from doing more of what you’re good at. It helps to make fewer mistakes, but doing less of what doesn’t work is not in itself going to make you a living. It’s crucial to know what you’re really good at;

5) Improving your preparation for trading can be as important as directly working on your trading results. So many outcome results follow from improvements in one’s process. Most of all, you elevate your trading by always working on your craft. A day without goals is a day without forward movement. And life is too precious to settle for standing still.

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