Better Trades – Strategies
When your trading habits fail to produce high results, it can be easy to see that something is wrong but hard to figure out why. Fortunately, the simplest solutions are often the best. These five easy-to-follow hints will help to make better trades
1. Don’t trade blindly. Remember, every good trading plan will have its highs and lows to make better trades. However, having that plan in the first place is key. It’s one thing to experience a calculated loss, but trading blindly without direction and hoping things will change can be the shortest route to financial disaster. If this sounds like your normal pattern, stop trading immediately and make better trades. It’s time to sit back, figure out where you’re going wrong and come up with a winning strategy before getting back in the game.
2. Keep trading logs and review them regularly. By bringing to light your habitual responses to changing market conditions, a well-maintained record of your trading history will help you nail down winning strategies, correct bad habits and identify which markets have been easiest to trade. It can even clue you in as to what time of day works best for you. This knowledge will enable you to make the adjustments needed to improve your trading plan and get yourself back on track in order to make better trades.
3. Consider adopting a fixed exit strategy. If your trading habits involve tracking the market’s movements in the hopes of striking at the perfect moment, you’re likely to wind up losing in a hurry when the market turns against you. That’s when having a fixed exit strategy in place can save the day. While it might cause you to miss that elusive market high, it will also prevent unnecessary losses. Day traders in particular can benefit from this approach and make better trades.
4. Remember that while patience is always a virtue, it is never more so than when trading in the market. Highs and lows are ever the norm, and what goes down is sure to go up again. Waiting for the upturn is a far better strategy than selling on the lows and jumping from one stock to another. You have to realize how important this is to make better trades
5. Think about increasing your position size if things are going your way. When the market gods are smiling, staying the course may seem to be the safest course of action. It probably is, but it won’t win you the maximum gain. Although an increase of position size is never recommended when you’re losing, it can be a great way to come out a winner and make better trades if done when the timing is right. There’s money to be made in the market, but you’ve got to play your cards right. Following these five suggestions should help you to improve your trading luck and make better trades.