3 Simple Ways to Improve Your Trading Results

As professional traders we often get asked to share our experiences from when we first started trading. This is a common request and we are happy to share what we have learnt since almost everyone we encounter wants to avoid amateur-ish mistakes. However, just as you can’t fly a plane after listening to a pilot talk about flying, it is unrealistic to expect that you will be able to trade like a pro right from the get go simply by listening to a professional trader talk about trading.

Over the years, we have helped thousands of traders get on and stay on the right path. While every trader’s journey is unique, there are 3 simple ways that anyone can apply to improve their trading results. Here are the 3 steps, and we will talk about them in more detail below:    

1. Have a trading strategy
2. Set aside a regular time to scan the markets
3. Have a positive attitude – don’t give up!

Have a trading strategy

This is the easiest and most basic step that you can take to put yourself on the path to success, yet it is also the most overlooked! Too often, we see many traders trying to “wing-it” in the markets i.e. they’re constantly searching for the Holy Grail and are more concerned with what the pros are trading rather than why/how they’re trading it. Only a small percentage will actually probe deeper to ask about the strategy used by the professionals, and an even smaller percentage will go a step further and adopt or adapt that strategy to suit their individual trading needs.

A strategy is basically a plan stating why and how you will place a trade, and it will also cover how you are going to manage that trade when it is in play. We recommend also that you spend some time writing your strategy down as this will really increase your ownership of the strategy. Make it your own, after all you will be trading the market, not anyone else!

Set aside a regular time to scan the markets

Once you have written down your trading strategy, it is time to practice executing it. You will need to set aside a regular time which you can dedicate to scanning the markets for opportunities to implement your strategy. Some traders will get really stuck here because 1) they will not be able to find a regular time to sit down and scan the markets or 2) they will try to force themselves to trade when a particular market is open.

While you need to set aside a fixed amount of time to practice, the hallmark of a good strategy is that it can be used any time and on any market that meets the strategy’s criteria. And contrary to what you may have heard, you really do not need to be sitting in front of the screen all the time. One or two hours each day is quite enough to start with, and you can increase this as you improve your trading skills.  

Have a positive attitude – don’t give up!

Having a positive attitude is just as important as having a strategy and setting aside a fixed time to practice. Many traders simply do not give themselves enough time to master the art of trading. A common pitfall is to have unreasonably high expectations of winning every single trade; that simply does not happen, even in the movies!

Try to give yourself ample time to learn how to execute your strategy flawlessly, and keep proper trading records. Do not try to cut corners, even though it can be tempting to gloss over any mistakes you have made.

Each of us learns at a different pace and our trading paths are all unique. Nevertheless, if you follow the three ways listed above, you will have built a solid foundation for the rest of your trading career.

Happy trading!  

Regards,
The TWP Team