Are you interested in becoming a better trader so you can make more money? If so you have come to the right place at the right time. With this brief article I am going to share with you 7 simple tips that will help you be a better trader. Follow these tips and you will be well on your way to becoming a more profitable trader.
Tip #1 – Always Have A Plan Of Attack
Trading is not something you want to do off the cuff. You should start everyday with a clear plan of attack. The purpose of the plan is to guide you and keep you on track during trading. When putting your plan together be sure to use research and not your gut instinct. Good research will be far more profitable than your gut instinct in the long run.
Tip #2 – Manage Your Risk
In trading there is no such thing as a sure thing. That’s why it is so important you always manage your risk. Be aware of the amount of capital you have to invest. Don’t risk it because your gut tells you to. If you don’t manage your risk it will inevitably manage you. Know when to cut your losses so you can avoid losing it all on one trade.
Tip #3 – Stick With One Trading Strategy
One of the biggest mistakes I see new traders make is jumping from strategy to strategy. Just because you have a losing week doesn’t mean you need a new strategy. It means you need to tweak the one you are already using. Mastering one strategy at a time is the key to becoming not only a better trader, but a successful one as well.
Tip #4 – Wait For Confluent Trading Events
Confluence is when several different events come together to make one main event. Before making a trade it is wise to wait for confluent trading events. Doing so will simplify your trading and reduce your risk.
Tip #5 – Stop Basing Your Success On A Single Trade
It is very important you understand a trade is a trade. No one trade is more important than any other trade. All trades count! Either you win with a trade or you lose with a trade. Your overall success as a trader depends on what you do throughout the month or year. Not what you do in one trade. Stop placing so much pressure on a single trade.
Tip #6 – Get Plenty Of Rest Before You Trade
This is something a lot of new traders completely overlook. Rest is imperative to your overall success as a trader. If you are feeling sluggish on the trading floor you won’t make good decisions. Treat your body well and you will reap the rewards with better trading decisions.
Tip #7 – Be Patient
When it comes to being a better trader patience is your best friend. Things aren’t always going to go the way you want them to go. However, you have to remain patient. Stick with your plan and don’t deviate. Learn how to control your emotions so you won’t make a rash decision. Remember, you are in complete control. You don’t have to make a trade unless you want to.