If you have clicked on this article to read, you are well on your way to become a better trader. Because, this shows that you have been researching and doing your homework. Good job!
Now, the question now is this. How do you become a better trader? Here are some guidelines for you to follow so that you can become a better trader day by day.
1. Learn How Not To Trade
You must be thinking…Are you talking rubbish? I want to become a better trader but you ask me not to trade. If you did, you are 100% normal. Because if any one were to tell me this, I will tell the person that he or she is crazy!
But today, I realize that learning how to trade is even more difficult than learning how to trade. What I meant by not trading is when you have no clear entry signal. This is very important. You SHOULD NOT trade if you do not have 100% confidence or you do not see a clear entry signal according to whichever strategy you use.
Many people fall into the trap of wanting to do something everyday. If they don’t, they feel that they are missing out something. But let me tell you this. You are not missing out anything. Anyway, you do not lose anything for not placing an unclear trade. In fact, you stand a very high chance if you place a trade even if the signal is unclear.
2. Trade For Improvement, Not Money
This is one of the BIGGEST mistake most amateur traders make. They are all very anxious about making lots of money. And they make Money as their top goal in trading.
Yes, that is what we all want ultimately, to make money. Or else, we would not even pick up trading!
However, one should always aim to be able to trade well as their top priority. Trading well means…
You have more winning trades than losing…
You stick to your trading plans and rules…
You control your emotions and psychology…
You maximize profits and you minimize losses…
When you can trade well, don’t you agree with me that money will come? There is this saying, the more you chase after money, the more it runs away from you. So aim to trade well and be a better trader day by day and money will automatically flow to you.
3. Be A Law-Abiding Citizen
Some of you may laugh out loud when you see this. But this point is also extremely important. This is because trading itself is all about following and sticking to rules. This is the same to following the laws of a country.
Do you agree that if we do things so many times over and over again, we will eventually internalize it?
This applies here too. If you cannot even obey the laws of your country or follow the some simple rules. What makes you so sure that you will follow your own trading rules?
I strongly believe that we are creatures of habits. We tend to always do what we always do. So, I encourage you to start by becoming a law-abiding citizen and learn to stick to rules.
4. Keep Learning And Improving
By just following the above 2 points, you will definitely arrive at a stage that you are so good in trading. But keep your ego aside and do not be arrogant. Even if you may make more money than many other traders, learn from their experiences. You may not have experience everything that others have experienced.
Also, from the day you have decided to become a Forex, Futures, Options or Stocks trader, you have already embarked into a journey of endless learning. The market is extremely dynamic and learning will never end. Therefore, you need to keep learning and improving yourself.
I would like to end here and I hope these 4 points that I have covered will eventually help you in your trading. But whether it helps you depend on whether you allow it to.
