Best Tips to Improve Your Trading Game
Today I will share my top tips, tricks, tools and techniques that I use to stay ahead of my trading game. I’m very practical, so I share my routine as well as any tweaks. I also discuss how I handle the mental pressure and mental aspects of trading.
There’s no learning by doing in trading
Let’s start by stating the obvious. Most people will disagree with me, but you can continue reading to see why I am right. And this is not just about trading.
It is not possible for an athlete or a team to improve or become more skilled during a competition or match. They tend to be so focused and engaged that it is difficult for them to recall the things they have been practicing. While athletes may react to the things they see during a game and make changes to their gameplans, they rarely actually improve.
This is particularly true for sports. However, it can be distracting because you don’t see the thousands spent on training, preparation, exercise, and perfecting the skill. We are only able to see the player that makes it look easy.
The same applies to trading. You should only follow your trading plan during your trading day. As many traders say, ‘Screentime’ is not going to make your trades better. It can be difficult to keep your eyes open and remain objective during live trading. We’ll see later when and how real trader development occurs.
Smaller Circles – How to be a better trader Guaranteed.
Before you dive into the details of a skill, it is important to start with the fundamentals. You must learn the fundamentals of sports before you move on to the more advanced concepts. Even though you know the basics, you must continue to practice them every day.
Even though there will be disagreements or people who don’t want to listen, trading requires that you improve your mental game as well as your patience and discipline. It is impossible to turn a loser trader into a winner trader by searching for better indicators and systems.
As a trader, you are your biggest enemy. That’s why you need to focus on it first. Although most traders ignore this tip, it is what will keep them trading profitably.
Find out what is REALLY holding your back
Many traders don’t know why they keep losing their money. But they don’t know how to verify their ideas and suspicions.
These doubts can lead traders to “system hopping” and I often get a yes response from over 80% of traders when I ask them if they have changed how they trade in the past few weeks/days. Many traders will continue this cycle for many years, jumping from one technique to the next in search of something that they don’t actually need.
If you don’t have a routine for auditing or a journaling system, you will lose your way. It is impossible to improve your work habits if you don’t have a system for recording what you do. It’s impossible to find the right thing if you don’t know what it is. A trading book can help you pinpoint where you are going wrong.
Bulletproof entries using checklists
How often are you tempted to enter into trades you don’t want? If you’re like most traders, this probably accounts for a large portion of your trades. These performance killers can lead to impulsive trade entries, such as the fear of missing trades, second-guessing of your systems, boredom, or trying to make up for lost trades.
A physical checklist that lists each entry criteria forces you to put down your mouse for a while and really think about what you are about making. It’s simple, but it works. It is harder to lie to your self when you can see that the trade you wish to make is not in accordance with your system. It really helps to have a checklist with me each day.
Mental flushing is a way to deal with loss in a healthy and effective manner
Trades are not without losses. But it is essential to be able to manage losses and not let one loss turn into a huge loss.
In order to avoid reliving the mistakes of trading, you should get off your computer. Gary Fullet suggests that you take a walk, run or do any other activity to increase your blood flow.
This was how I learned to use this method. After a loss, I close my charting platform and immediately engage in another activity. While some might argue that this will prevent you from recovering your losses, I disagree and believe that covering your downside is more important in the long-term.
Price alerts for reducing screentime
This has been my mantra for months. I believe price alerts have been the most neglected and misunderstood trading tool. Price alerts are a great tool to help you trade because they remove the need for you to look at charts all day. You simply place price alerts at key price points that could signal a trade and close your platform.
This accomplishes two things. First, trades won’t get missed because you’re not paying attention or have no real process. Second: You aren’t glued to charts and aren’t tempted by ‘stupid stuff’ because you’re bored and want to flip through timeframes.
Know your way inside out – Trading strategy & watchlist
It is something I do every Sunday. Even though it takes me around 3-5 hours to create trading plans, I would not trade without first creating my watchlist. I also make sure I have written down my trading plan. When a trader begins creating watchlists or writing trading plans, there are two things you need to do:
This will help you understand your trading process and force your mind to be more thoughtful about your rules and approach. It will be obvious that you don’t fully understand your trading method if it isn’t clear what you are trying to find.
Your trading plans and the actual trade executions will become more comparable over time. You may notice that your trading plans are correct but you miss trades often. It is time to evaluate your routine or improve your confidence.
The screenshot collection hack
This tip is great advice for technical traders. Begin taking screenshots of all trades, both entry and exit. If you trade only a few trade patterns, you can quickly judge the quality and efficiency of your trading by looking at your trade screenshots. If your trade screenshots look differently, this means that you may not be following your rules well. As a technical trader, your trade screenshots will look identical if you only follow one (or a few) pattern.
These exit screenshots will help boost your confidence and enable you to trade more effectively. The following are some things to look for in the exit screenshots
Did I exit my trade according to my system’s rules, or did I act emotionally
What if I don’t want to reward my winners?
This is a simple trick that can help boost your confidence.
Journal: The most important tool to a serious trader
If you’re still not giving up, I’m proud to say that you are ready to make changes in your trading. A trading diary is the best tool to differentiate the professionals from the amateurs. Keep a journal is hard work, which I admit to being.
At the end of every trading day, I keep a journal that records my trades. This allows me to reflect objectively on my trading. You can’t help but feel frustrated when you have to trade the 10 th time you broke your rules or lost a lot of money. But there is no better way to learn about the problems you are having with your trading. Most traders will close their eyes and admit that they need a better system. A journal is the ultimate lie detector. It holds you accountable.
Self-check: Do trading and investing in stocks and shares you consider a business or hobby?
Now is the time to test this. Do you admit that you are the problem? If you are willing to try the tips from this article, you will have a better chance of success. If you are content to continue doing the same things and consider this article nonsense, you’ll be in for a rude awakening.