As a highly motivated trader, you’ve likely done your research, read several books and blogs and maybe even found trading strategies that lead to results. The next step, however, is to put together a complete working method that works specifically for you.
If you want to become a better trader, someone who is confident and can make winning trades consistently, you need to know what markets to trade, you need to have a tested trading approach, you need to have good analysis techniques, and you need systems and strategies that work.
To get started, here are some important considerations:
Treat Trading Like a Business
Like most successful traders, you must approach trading as a full- or part-time business rather than a leisure activity. Committing to learning the details of trading is the first step to becoming a confident trader. Remember, trading as a business can be expensive, with losses, taxes, risk and uncertainty part of the equation. As a trader, you are essentially a small business owner and need to do your research in order to maximize your potential return on investment.
Trading is competitive, so it’s secure to assume the competition sitting another side of a trade is adopting full opportunity of modern technology. By charting platforms online, traders are able to learn a variety of methods for viewing and analyzing the markets. Further, testing an idea based on historical data can save a trading account, not to mention prevent undue stress. The use of smartphones allows traders to monitor trades virtually anywhere, and can increase performance.
Take a Course
If you are interested in learning how to become consistent and profitable in your own trading, taking an online course by a professional trader is another option to consider. For example, Certus Trading is a company dedicated to helping investors and traders achieve sustainable profits in ETFs, trading stocks, currencies, commodities, options and financial futures. Certus Trading is led by Matt Choi CMT, who has been trading for nearly two decades. Also he has a identical perspective on trading the markets.
Focus on the present
Let’s say you have a strategy that has been working well for a long time. Then, all of a sudden, you begin losing. Most amateur traders will abandon the strategy and move on to something else and then when the strategy resumes working, they’ve missed out on the profits. Trust your strategy and use it over and over again during the same situation understanding that, in the long run, you will succeed.
The bottom line is, strategies fall in and out of favor over different time frames. Create your own strategy and test it on a time frame that suits your preference. Most importantly, make your trading approach fit your own personality and goals.