Five top new years trading resolutions
Some of these may surprise you, others not so much. But if you want to get off on the right foot here are my suggestions for you.
(1) Exercise
Even if you just go for a walk, start each day with some exercise. There is a proven link between exercise, wellbeing and brain function. It should be the first thing you do ahead of anything else, each day. Make the time to do it, there should be no excuses.
(2) Embrace losses
With a huge sense of irony, too many people blow their trading banks by trying to avoid a loss. Losses are part and parcel of trading. A positive expectancy is all about winning more than you lose, therefore expect losses and account for them. After all my time in the market, I still lose about 2/10 races on a market that I understand wonderful. Losses tend to occur for reasons you can’t control and are inevitable, account for them in your expectancy.
(3) Don’t judge yourself by others
I’m often guilty making people do this, not by design of course. I still get a huge buzz when I pull in a decent result and in an industry stuffed full of misleading claims, I’m always keen to show that I actually really do this. When I really go for it, that allows me to pull in something special. But of course, the results you see are years of experience and knowledge compressed into a few minutes, usually with large stakes. Everybody has a very personal journey through the markets so don’t reach for the unattainable. Keep things simple and do them well, within tolerable limits.
(4) Don’t buy ‘systems’
Doing this for a living is rare, doing it on a massive scale ever rarer. But there is always an active market for people who sell systems for a living. Unfortunately, 99.99% of the stuff you buy will be completely useless. So invest that money in exploring the market yourself and don’t waste it on something that only exists to extract money from you. Post on the forum for views on systems and processes and you will get an honest answer. Somebody has probably got a copy or has seen it’s contents and can comment on it for you. Don’t look at fake ‘review’ sites. They are all there to get you to buy. Avoid ‘reviews’ that don’t use a direct link as it is probably affiliated.
(5) Don’t set specific targets
Each week I expect to get something, but I never know how much. I know what would be a good week and a bad one, but I don’t specifically target it in a narrow fashion. That means I don’t end up chasing it and I focus purely what is in front of me, good or bad. I’ll often avoid the bad completely because of that.
It’s all about the long haul, not the next trade. So don’t cave into the emotional rollercoaster that this brings. Just chip away and do the best with what is in front of you.
Category: Trading strategies
