If you are currently passing through difficult times in your trading career, today’s lesson is meant for you.
As a new trader, you are bound to develop some bad trading habits and you could find yourself stuck in an extended losing streak. It’s easy to feel lost or overwhelmed like trading success is so far away and may take longer to achieve.
I am here to help and in today’s lesson, I will share with you five tips that I have learned over my 4+ years as a trader that (if acted upon) will improve your trading.
1. If you’re lost and losing often, TAKE A BREAK (for a while)
When you are in a bad losing streak and you feel out-of-control, confused and even angry, it’s really time to stop trading. It is a painful experience if you are trading with real money and losing money over and over.
Taking a break could probably be the fastest way to improve your trading because once you quit trading with real money you remove emotional trading mistakes and you start realizing your mistakes immediately. You need to clear your thoughts in order to see through the trading errors that you were making.
2. Learn to understand and trade price action strategy
If you don’t know how to read the price chart and you are trying to trade the financial markets, then your journey could be a pretty tough one. Learning to understand and trade price action strategy improve your trading, quickly. Knowing how to understand or trade the price action strategy will make the process less difficult and trading success achievable.
3. Cut off news
Watching the news could be a waste of time and could complicate the process of trading the financial markets. Unfollow news events and ignore all ‘expert’ opinions out there about the markets. By doing this, you will have a huge boost in making profits from the financial markets.
Visiting forexfactory.com, you will receive great updates on high impact news. Note you need to learn to trust your gut in trading, not other peoples’ guts.
4. Quit checking intra-day charts
I am a big advocate of the daily chart time frame and higher time frame trading. Do you want to see results in your trading? Stop trading the intraday charts and focus ONLY on the daily chart time frame until you succeed.
5. Get educated
Finally, many new traders try to do so many things at the same time, so to speak. I mean, they do not focus enough on one trading strategy. This causes confusion and having inconsistent thoughts in their minds, which eventually leads to over-trading / gambling in the market.