Getting sick of the great ol’ trading suggestions for beginners?
Listed here are some unusual (yet very helpful!) pieces of recommendation I’ve garnered from trading pros:
1. Don’t take a look at your P/L
Wait, what..?
That’s right, close that P/L tab in your trading platform or cover that panel up with some masking tape if you have got to.
As newbies, it’s tempting to focus solely on these bottom line numbers because it’s the important scoreboard that’s nearly inconceivable to disregard.
Nevertheless, every win or loss might wind up reinforcing trading biases before you’re even aware of them, enough to cloud your decision-making.
As an alternative, as writer Mike Bellafiore writes in his book One Good Trade, it makes more sense to “deal with your goal of developing skills first and convalescing on daily basis, day after day.”
You’re probably wondering how on the planet you’re presupposed to gauge your progress in the event you don’t check your profit/loss figures in your trading account.
Well, in the event you’ve been keeping an in depth trading journal with these necessary metrics, then you definately’d know that there are many other ways to maintain track of improvements (or lack thereof) and the adjustments that you must make.
2. Take day without work
With the forex market open 24 hours each weekday, you may be apprehensive about missing big trade opportunities in the event you don’t watch the charts on a regular basis.
And even when you have got developed a trading schedule that offers you a reasonably decent work-life balance, you would possibly still be feeling guilty about taking some days off in the event you don’t feel like trading.
The excellent news is that the market doesn’t run out of fine trade setups, and it’s only a matter of being alert and prepared to catch those once they occur.
The issue is, there will likely be those days while you’re just not 100% in the sport. You’re likely feeling off while you’re sick, moving to a latest house, or reeling from a troublesome breakup.
What that you must tell yourself is that it’s okay to take day without work from trading as an alternative of forcing yourself to maintain at it. Athletes affected by an injury or undergoing mental health concerns should not forced to play, right? Take it from gymnastics GOAT Simone Biles herself!
The market doesn’t care in the event you’re taking more setups nor does it reward you for putting in additional hours. It’s the standard of your trading decisions that makes all of the difference.
3. Take just one trade per day
Most newbie traders are liable to overtrading, believing that more setups taken improves their possibilities of winning.
These ain’t lottery tickets y’all!
One among my favorite trading psychologists, Dr. Brett Steenbarger traces overtrading to the mismatch between one’s profit expectations and market volatility.
In other words, traders often feel the necessity to catch multiple market moves so as to hit their goals.
If you must maximize your opportunities and skills, it is advisable to take into consideration being pickier together with your trades.
Day trading coach and writer Galen Woods suggests the One Bullet Motion Plan that sets an absolute one-trade rule which forces you to think like you have got only one bullet left. Because of this you have got to aim properly and pull the trigger at the appropriate time so as to make probably the most out of your only shot.
While the following pointers seem counter intuitive at first, you may be surprised to see how these can positively affect your trading mindset and ultimately your profitability.