How Fast Can You Turn Your Trading Around
“To improve is to change; to be perfect is to change often.”- Winston Churchill
Nobody can avoid the eventual slump and maybe for some of you you have always been in a slump! No matter how well you have done in the past, trading is a what have you done for me lately business. The important thing is to recognize when your trading has tapered off and then immediately take a deep breath and start working on the steps to correct it. Below are a few tips that you can go to when in a slump.
Start trading much lower sizes– Nothing will help you refocus on your trades and eliminate anxiety than lowering your position size. The reason is you do this is you want to take your attention off of the money and solely focus on the trade itself. One of the reasons traders lose on many of their trades is because they get shaken out by quick moves as a result of over-sizing and they panic. Trade small enough to where you decisions are not swayed by a fluctuating P/L, then slowly add size as you build confidence. Also, its better to trade small 15 to 50 share lots rather than bother with simulated trading. Simulated trading carries no risk and in my opinion a simulator is a wast of time.
Eliminate excessive decision making– You can easily over complicate the trading process and I think most traders do. Your decision making should be a simple and effective as possible. In trading information comes fast and if you need too much data to make a decision you will miss out on so many opportunities. Keep the decision making process simple by keeping clean charts and using tighter stops.
Turn off your profit and loss-Similar to using lowers sizes, turning off your P/L can help keep the right focus. As traders we have to keep 100% of our focus on the trade and concentration on how much you are up or down can change the way you view opportunities. I myself suffered from over focusing on profits rather than trades. What this did was when I had a negative P/L my focus was getting my money back. When I had a huge P/L my trading became sloppy and useless. I had no other choice but to ignore the P/L during trading day. It was the best decision I ever made.
Find out what you are good at a drop everything else – You dont need much in the way of strategies to be a successful trader. Actually most successful traders trade the same, boring, mundane pattern over and over again. What makes the difference is not how many different trades you take but rather the quality of the trades. What determines your success rate is how comfortable you are with that particular set up. Stick to what you know.
Get a mentor– The best investment you can ever make is the investment you put in to yourself. The fastest way to get to where you want to go as a trader is find a mentor that can maximize your talents. Many traders misinterpret what a mentor is for. Mentors are not there to spoon feed you alerts but they are there to help with advice, teach you how they use their strategies within the market and most importantly they are there to help you with the emotion commitment that it takes to succeed.
Remember trading is a journey and an ever changing entity. You must always continue to educate yourself and evolve with the ever changing market place. To take your trading to the next level, visit our services page here.
Doug
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