The idea that top stock traders are some kind of prodigies with outstanding dexterity is nothing but flawed. They aren’t genius—neither do they know anything exceptional. The only difference that separates them from an average trader is that not only do they know what needs to be done—they also know how to do it.
You likely know what you can do to improve your trading prowess and profits, you just find yourself lost in that how-to part, don’t you? And this is where all those trading guides and “hacks” fade in charm that preach but without any definite solution.
If you’re looking to boost your trading performance, it isn’t easy. It sure is simple though. All you need is to fix few loopholes and make changes in your overall approach.
With these 5 tips from market insiders:
1. Maintain a trading journal
The importance of record keeping cannot be stressed more. It is, in fact, one of the most important and high-rewarding habits of successful traders. So if you don’t already, maintain a journal starting today. It helps you track where you started from and where you are now, which eventually helps you improve.
2. Evaluate your past performance
Just maintaining your journal won’t help. You need to refer to it every once in a while to identify mistakes and eliminate them. So evaluate your past performance. How that one decision affected your return? Did taking too much time in making decision helped? What should be your take profit-stop loss point? Analyzing your trading journal will help you find answer to these crucial questions.
3. Have a nice risk management plan
Sure you want to keep the risks at the minimal. But this isn’t always possible. Even when the trades are yielding decent profit, the stakes in your decisions won’t be same. So to keep yourself on track with lower risks and higher profits, it is nothing short of essential to have a well-planned risk management strategy.
4. Write down your goals and plans
As clichéd as this may sound, writing down your plans and goals is quite important. In the bustle of stock market, it is easy to lose track of the bigger picture for short-term wins. So when you have your objectives well written, you will always be in know of what you want and what you should do to grab it.
5. Keep yourself healthy
Ask any successful trader the secret behind their big wins, most of them will say it’s their good health. When you’re in good health, you instinctively make better trading decisions and plans. So sleep sufficiently, eat well and do workout whenever you get time. Always put your health ahead of your financial gains. ALWAYS!!!
These are 5 insider’s tips that can significantly improve your trading performance. Start making some changes in your overall trading habits and approach and within a month those changes will become lasting, making you a far better stock trader.