New Year Resolutions for Traders
What Are Your Trading Goals for the New Year?
Traditionally, many people make New Year's resolutions. Some promise themselves that they'll eat better, lose weight, behave nicer, stop bad habits, start new habits... You've probably been there done that.
But what about your trading? Have you made resolutions before? Like have more discipline? More patience? Stop chasing trades? Some may even consider quitting trading altogether?
We've heard many of them but likely not all...
Have you ever asked yourself why is it that 95% of retail traders fail? If there's a silver lining in that it's that they tend to fail fast, like on average within 3 months and never trade again.
So what do the 5% of of long term successful traders do that is so different? Is there some secret that they know that others don't? Hardly.... They simply have better risk and trade management principles than most.
I was once taught that if trading isn't boring to you than you're probably not trading properly.
Boring? Hmmmm... at that point I had never thought that trading could or should be boring.
Done properly, trading can be extremely boring and until you experience this phenomenon it's really difficult to explain.
If you've ever hunted for wildlife or fished there are many similarities to trading. You have to be in a certain area, with proper training/credentials/equipment, you have to actually know what it looks like you're hunting or fishing for, you have to stake out an area that you essentially sit and wait for the right opportunity to make your shot or hook-set a fish. And yes, the sit and wait can be boring.
If you look at what traders do vs hunters do you ever see a hunter that's been in the field start shooting at nothing or do they wait for the hunted to come into sight for a shot? If they miss do they keep shooting into thin air? Or how often does a hunter sit and wait hours for "the shot" but then doesn’t take the shot?
In trading these characteristics often translate to:
- Entering Trades Early or Late
- Chasing Trades
- Fear of Missing Out (FOMO)
- Trading Too Big
- Taking Profit Too Early
- Over Trading
- Revenge Trading
- Not Having a Plan...
And the list goes on.
So many times we hear that trading takes patience and discipline and in a sense it does. But more so what trading takes is a process of steps and rigid requirements to adhere to the process. In this case "rigid requirements" often looks like patience to unsuccessful traders. But in reality it's simply requirements necessary to be successful ie. consistent, confident, wins > losses.
So what are your New Year's Trading resolutions? We'd like to hear them.
We Can Teach You How to Put The Odds in Your Favor and Become the Casino!
Find Edges and Trade With the 5 Price Action Tools Native to Every Charting Platform
ChartPros is a Market Education & Services Leader for Day or Swing Traders looking to supplement their income or even better, Quit Your Day Job! We teach price action charting for Futures, Forex, Equities, Commodities, Crypto (Bitcoin), Options etc using precision focused Technical Analysis. We don't sell signals or indicators but we can provide you the tools to be more confident and consistent with your trading results.
Our Philosophy... Give a trader a signal and they’ll profit for a day; teach a trader Price Action and Risk Management and they can profit for a lifetime…
Our marquee product is the Price Action Mastery Certification course and we are the only training firm that offers an Advanced Fibonacci trading course that teaches traders how to identify institutional algorithms using advanced fibonacci strategies not revealed before to retail traders.
ChartPros has an Excellent rating on TrustPilot!
Hi Tom,Yes, you are correct, many people make resolutions but they never make the changes “inside” so they can see the chnages outside. This is why Gym memberships skyrocket in the first few moths of the year then fizzle out dramatically not long after, people want to make changes without truly “making changes”. having said that, and being conscious of this, I wil be working on my trading for sure. I have set new goals nad they all start with the outline you mentioned. More patience, more discipline, and more waiting for the market to show me what it wants to do as opposed to chasing the trade. I had already began to practice this prior to the years end, and man, what a difference I have already seen. I appreciate the knowledge I have received from Chart Pro’s and look forward to continual learning. Thank you.