Five Easy Trading New Years Resolutions You Should Consider – Introduction
As the new year kicks off, chances are that you have created new year’s resolutions. These are the things you want to achieve and you are not alone. Around the world, millions of people start every new year with fresh resolutions and a resolve to be better. They write them down and meditate about them. However, research shows that most of these people give up on their resolutions as soon as the year gets underway. In this article, I will highlight a few trading resolutions you can easily follow in the new year.
First, you can easily set up a resolution of having a trading journal. This can either be a soft or hard copy document that tracks everything that you do. It should have the assets that you buy or sell. It should also have the reasons for opening and closing the trades as well as the profit and loss for every transaction. The benefit of having a trading journal is that it allows you to look back at your trading record, identify the mistakes you have done, and appreciate the opportunities you have taken. These journals will also help you in future when you are writing a book reflecting on your trading career.
Second, you should resolve to read more. As a day trader, reading will help you achieve your goals in many ways. For example, reading biographies of traders will help you learn from their experiences and their mistakes as well. Reading about economics will help you identify how the economy works and reading about business will help you run your trading operations as a business.
Third, you should resolve to spending more time with your friends and families. If you are like many traders, you probably spend most of your time online researching about securities and trading. While doing all this is good, you should also start focusing on the social part of your life. This entails spending more time with your family and friends. As you will recognize later in life, the more time you spend with your loved ones will be your most valuable time.
Fourth, you should resolve to be more cautious in the market. This is because we live at a time of increasing tensions around the world. The European Union is facing a slower growth while the United Kingdom is having a challenge with Brexit. In the United States, the Fed is unsure about what it wants to do. China too is seeing its growth slow down while the Emerging Markets are not at ease. The trade war is continuing and populism in Europe is rising. Therefore, to stay safe, I recommend that you resolve to doing some risk management. For example, you can resolve to limit the lot size of your trades. You can also resolve to always have a stop loss for your trades.
Finally, you should resolve to inspiring others. One thing that has made me a successful trader is the fact that I always try to teach people about trading. As I have done that, I have widened my experience and knowledge about the markets. In other words, teaching and guiding other people has made me a better trader.