Own trading strategies
Improve your trading performance
Traders are simply investing their time, thinking that if they spend a lot of time around the markets, analysing charts, reading books and studying courses, their skill level will improve. Investing time is necessary when you are starting out, as there is a lot to learn. But putting in hours will not necessarily increase your profit potential. If you always repeat the same mistakes, putting in hours will just be meaningless with those habits in place. To improve, make repeated and deliberate choices. Here are five things to start doing today to improve your trading performance.
Trading is tough and not a cup of tea for everyone especially when we go at it completely alone. So choose a person who could be just a friend or family member who you have told your plans to and who you keep updated on your performance. Share what you are doing, what you are struggling with and what you are having success with. Anyone can get side tracked, so be open to being told when you have gone astray. When your own discipline and self-awareness fails, you will have someone to help you get back on track.
FOLLOW YOUR PLAN
Talking about strategies with other traders or discussing your performance with your trading referee is fine, but avoid the opinions of others when it comes to specific trades. Trade your trading plan, your way. It doesn't matter if a trader you respect says they are going to buy when your plan says to sell.
A strategy may seem simple on the surface, but even a simple strategy is hard to implement in live market conditions. Every day, every trend, every pullback is slightly different; nothing looks exactly the same as it did in the textbook examples. So trade it in a demoaccount until you consistently see profit from it.
Each day take one minute before you trade to make sure you are feeling clearheaded and focused. Also take a couple of seconds to reiterate that you're here to trade, not check your social media accounts, email or watch videos online. When you trade, simply focus on trading and leave other matters. Check the economic calendar to be aware of events that may move the market, so you are not taken by surprise during the day. If you are angry, upset or unfocused, avoid trading. It only takes one day, one trade even, to lose an entire account when not in the right mind frame.
RECORD YOUR TRADE
Review every trade you make. Take screenshots of your trades with entries, stop loss levels, targets, and your technical/fundamental notes so you can easily review your trades at a later time.
The author is associated with Mercantile Exchange Nepal Limited in the capacity of Junior Officer in Business Development Department. He can be contacted through firstname.lastname@example.org