With the advent of New Financial Year 2016-17 from 1 April 2017 we all should make resolution for improving our trading results for coming Financial year.
Trader should DARE the Mr Market for 2016-17. Let me explain it in more details:
Every time we begin our trading sessions, we need to communicate to ourselves that we will be confident, prepared and most importantly committed to executing trades when our analysis shows that a good trade is in front of us.
Never allow the market, the news, your Social Media friends, your past trading mistakes or anything else send you a false signal that causes you to sit back and do nothing when you can easily see from your training that you should execute a trade right now.
Discipline is the most vital characteristic a trader needs to develop to be successful, It looks simple to say follow your system but the hardest part to implement. It requires lot of practices and self motivation.Of course, sticking to your plan is anything but easy, which is where discipline comes into play. Just do what we know needs to be done.
“I will think less, I will analyze less, I will do less in all aspects of my trading; I will aim to keep it simple”
Keep it Simple should be your motto!! Think Less Analyze Less and do less trading. This should include removing excessive indicators . Listing to many analyst needs to be avioded , Stick to your trading system which is thoroughly back tested and do not complicate your trading set up. Price Action Based trading set up molds perfectly.
Think of Virat Kohli Do he hit 4 or sixes in each and every ball… Not possible similarly when market does not want to give you money when no profitable trade set up is visible avoid trading.
Over leverage lead to excessive risk and which ultimately leads to disaster in trading account. If you want to Get Rich quick you are at wrong place.Stock market is perfect place to get poor quickly. Do not take 10-20 times leverage it will kill your account.
Fear and greed are two emotions that affect our trading decisions. Unfortunately, they generally lead us to make the wrong decision at the wrong time. While life wouldn’t be much fun without emotions, fear and greed can be hazardous to your trading.
As you look back at losing trades in 2015, identify which emotion (greed or fear) drove your decisions to enter and exit the trade. This will not be easy, nor will it be enjoyable. Yet, it may you help you be a better trader going forward.
As we identify how our emotions have affected previous decisions, we can better recognize when we might fall prey to fear and greed in the future.
Education is the key to success in any field of life. I have seen traders who lost lakhs of rupees due to ignorance in trading but never invested in educating themselves. Educate yourself ,Learn the tricks the professional traders uses and learn trading system and then start trading with full fledged vigor. Any Sportsman you follow will take prior training before playing, so if you think you can make money just by sitting in front of trading terminal and trading based on emotions you will lose a fortune. Learn and Earn should be the motto.
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 2016 and I’ve got some exciting things planned for my students and readers alike.
May 2016-17 be your best and most profitable year ever. Until then good luck and good trading!