As 2017 come to an end and 2018 approaches, it’s an important time for a trader; it’s time for you to make an honest assessment of your trading performance over the last year. A time to start over. And, in the immortal words of one of my all-time favorite movies that I never forget to watch around this time of year, Vanilla Sky, “every passing minute is another chance to turn it all around.”. The dawning of a new year is the perfect time to set new goals and embark down uncharted paths. Now is the time to plan your Resolution.
You can have a bad/good/Neutral trading year, it’s time for an honest self-assessment of the things you did right and wrong over the course of the 2017. If you want to grow as a trader you will need to reflect on your mistakes and correct them for a better 2018. If you can’t be honest with yourself about your trading performance in 2016 and own up to the mistakes you committed, you stand little chance of turning the ship around in 2015.
Before we get to some suggested resolutions, I’d like to offer my point of view on trading motivation. In my humble opinion, keeping motivated is one of the most important psychological things in trading.
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 !”
As discussed in the 3 articles Trading Lesson Learnt From my Trading Guru Series Traders need to have realistic goals. It makes no sense to set yourself up for failure by setting a goal that it unlikely to be achieved. Make your goal realistic which are easy to achieve on consistent basis.
Promise to stick to your chosen trading strategies, so that you can achieve your trading goals.
Trade Less Earn More should be Motto of traders for 2018.
Another great resolution would be to avoid impulsive trading.
It is not necessary to trade all the time to be profitable. What is important is to not allow any trade to become a big loser. “Look back at all your impulsive trades of the past. How many of them turned into disasters? How many of them became big losers?”
This takes us right back to following the trading plan. Impulsive trading is a trait that can only be stopped if you recognize it as a problem. If you are trading when your strategy has not issued a signal, you are likely being impulsive.
Don’t allow yourself to trade unless your trading plan tells you to. Try to relax and realize that the plan is unemotional, and allowing your emotions to rule will cost you money. The plan will not.
Get Comfortable with Losers
Losing is/was/will be part of the trading? Every successful trader takes losses. Everyone means Everyone be its top FII’s/DII’s. The major difference between Profitable and Loss making traders is How easily you can get Rid of your losses and How early can you forget them.
Following Profitable Trading strategy also keep you “in” winning trades and also make sure you cut your losses early so that they do not become big and blow off your trading account.
Small losses and small winners do not make you successful. Small losses and big winners do. You must stay with the winning trades.
Wishing each and every one of you a happy, healthy and prosperous New Year. Happy New Year!