Welcome back and happy new year. It’s a new year, new dreams, new goals and new mentality. Hopefully you have rested, I did. I am ready to roll and hit the markets again. I must add, I am feeling refreshed and ready now more than ever.
On this post, I am going to talk about 4 things that I think will assist in channeling you to the right direction. Below is my A list of the things that have helped me to grow from strength to strength over the past few years of trading the financial markets.
You know how I try to normalize this Forex thingy as exaggerated as it is. I always say if you keep it real, you are likely to treat it as an investment, and that on it’s own eliminates the gambling mentality. During this time of the year, everyone is out there trying to make some plans, be it preparing for the kids to go back to school, going back to work, going back to the gym and also going back to eating clean (yours truly has already started after indulging so much during the festive season) and some are working on new ideas to be implemented to their businesses and so forth. We are all busy preparing for the year ahead. As a trader, you should also be working on your plan for the year. Your planning should not leave out a trading plan which is basically about these key areas:
I am very aware that not everyone trades the same way as I do. There are a gazillion methods of trading out there, but there are some core principles that can be implemented by anyone, irrespective of the method of trading used. See, you do not have to trade like me, but you can implement some of my tips in a way that suits your own method. For me, those 4 are a must in my trading plan.
2.Setting goals – short and long term
Trading without any goals is like driving around with a map without a destination. You are just driving around but you are not sure where you are going. Let’s talk about your intentions first. Why did you even open that live trading account? Please do not start with the “I am trading for fun story” because that would only mean that you have a very expensive taste when it comes to having fun. Setting your short and long term goals should not leave out your intentions and your intentions should revolve around the following:
- What are you planning to achieve?
- When do you want to achieve it?
- Is it a daily, weekly, monthly or a yearly income that you are trading for?
Whatever it is, make sure you are as realistic as possible to avoid disappointments which might lead to gambling (it happens when you are expecting too much from a smaller investment) You must also make sure that you do understand that your earning potential is highly linked to your start-up capital. You might like this old blog post that is directly addressing the issue of start-up capital . Please note that my blog posts are in no way about giving financial advice. These are my personal methods that have worked for me. I am also not guaranteeing you anything, I cannot even guarantee my own returns after so many years of trading the financial markets, no one can, because the trading opportunities in the markets aren’t the same every day. If you happen to like what I share, tailor make it to suit your own circumstances and also consider your needs, which might be different from mine. Once you get that out of the way, half the battle has been won and congratulations, you are on your way to achieving them. Your path is getting clearer and clearer, you must just get up and execute. Remember to write those goals down, always keep a trading journal with you, I always do.
This is my personal favorite, without focus nothing great can be achieved. I have seen how it can delay one’s progress/growth. Being focused simply means that we are eliminating all distractions. In our case (as traders) distractions could be all those Forex groups. I can testify to that one. I started to focus more and to see progress when I eliminated all Forex groups. That is the best decision I’ve ever made for my trading career, I will never regret it. You should try it, and see if it won’t bring about change. Find a mentor if one on one private mentorship and having someone who will hold you by hand is what you need, and you are willing to pay. Try not to follow many social media pages if self-teaching and learning for free from the internet is what you are looking for. Whatever you do should be in line with what you want, you must be sure of what you want. If you need a mentor, you can email me at email@example.com for a quotation on my private lessons or Whatsapp me on +27 64 510 4132 or +27 76 966 9392. Focus also means we are saying NO to all the noise (there is so much noise in the net) and we are trying so hard to master what we have learned. There is no one way to trade, but there should be one way that you as an individual use to trade. I found mine, it goes very well with my lifestyle, my personality and my needs.
This can only be possible when you have applied “focus”. Being consistent has got nothing to do with the amount of profits that you make daily. Try to track your weekly or monthly progress because a good trader is the one who can look back on what he/she has achieved month after month and be able to track their yearly progress. Consistency is also about being able to trade the same account, grow it while you are managing to protect your equity. If you are making weekly income for the whole year but you add funds to your account monthly only to donate it back to the markets, I am afraid you are not progressing, and you are not consistent. Being consistent is not about making the same percentage amount per month (remember what I said about guarantees), it is about being able to move/grow your account from point A to B, not necessarily from A to Z. If you manage to move by 10% this month and manage 5% the following month, and 30% the next month, you are doing great. You are maintaining some level of growth, and that is what your account needs.
Adding funds to your trading account is another great way of creating a better trading environment which will allow you to buy and sell in larger quantities. Trading in larger quantities is highly linked to higher profits, which will lead to less pips and more profits. If it means setting aside a certain amount monthly to boost your account, do that, but do not do that only to donate it back to the markets. You will need a certain level of discipline to get to the stage where you are able protect your equity (I cannot elaborate more in a blog post). Lastly, track your progress, get feedback from your mentor (if you have one). Do not shy away from facing the reality of your trading status. Track your progress and be honest to yourself or your mentor, this is a brilliant way of keeping consistency. Many traders think that tracking is about judging themselves and it makes them feel bad for making “stupid” mistakes. The truth is, you can only fix what has been diagnosed and the only way to get that diagnosis is through tracking your own progress. Don’t be too hard on yourself. Be courageous enough to draw those weekly statements and face them. Remember, no feedback is negative. Every feedback makes you to perform better next time. (I cannot wait to resume our weekly feedback sessions with my mentees)
I cannot believe that a well-planned post which was supposed to be only 300 words has gone this far. Keeping it short is something that does not exist with me. I am glad that I did not make any promises of keeping it short (my mentees know, I cannot keep it short). Thank you for for stopping by, sorry for such a long post. If you find it informative, kindly share it with your social media peers and let’s assist as many traders as we can. I am sure someone out there is looking for this practical information. I wish you all a productive and a pip filled 2018.