Today, I’d like to share with you my top 9 trading tips, tricks, and tools. I am very practical and share my trading routine, as well as other tweaks, and how I deal with the mental side and pressure of trading.
#1 Trading is not learning by doing.
Let’s get to it. We will start with what most people disagree about. But, if you continue reading, you’ll see why I’m right. This isn’t just limited to trading.
A match or competition does not make an athlete or team better. They are usually so focused and engaged that they only remember what they have been doing. Although athletes might react to what they see in the game, they do not actually improve their gameplan.
This is especially true in sports. It can be confusing because it doesn’t show the thousands of hours spent training, practicing, and perfecting the skill. We see only the superstar player who steps onto the field and makes it seem so easy.
Trading is no different. All you have to do during a trading day is to follow and execute your trading strategy. You will not become a better trader by watching screen time, as many traders claim. Live trading can be stressful and emotional. It is difficult to remain objective and improve your trading skills. In a future point, we will be able to see how trader development actually happens.
#2 Mental flushing is the best way to deal with losses
Trading is not without its losses. It is crucial to learn how to handle losses so that one loss doesn’t turn into many.
If you are trading, it is a good idea to get away from the computer and do something completely different that requires your full attention and doesn’t let you think about what went wrong. He recommends that you go for a walk or run to get your blood pumping.
This is how I used it. I closed my charting platform immediately after losing money and started a new activity. You might think you are denying yourself the chance to recover your losses. But, I disagree. It is far more important to cover your downside over the long-term.
#3 Smaller circles, a.k.a. how to become an even better trader. Guaranteed.
You should start by learning the basics of the skill before moving on to the more complex aspects. Before you can learn advanced concepts in sports, you must first understand the basics of the game. Even if you’re a pro like Gary Fullett, you still need to practice the basics every day.
Trading is a difficult business. Although there are many who won’t agree with you or don’t listen to you, it is important that your mental game, your patience, and overall discipline be improved. A losing trader will not become a winner by trying to find better indicators or systems.
Your greatest enemy as trader is you, and this is what you need to be focusing on. This tip is often overlooked by traders, but it will prevent them from trading profitably.
#4 Bulletproof entries with check-lists
How many times have you tried to convince yourself into entering a trade that you shouldn’t? This is a common problem for traders. Fear of missing a trade or second-guessing systems are performance killers that can lead to impulsive trade entry.
You will be required to review the physical checklist, which lists your entry criteria one at a time. This will force you to stop clicking the mouse and take a few moments to think about the decision you are making. Although it sounds easy, it is effective. It’s much easier to lie to yourself when the trade you are considering is not compatible with your system. Every day I keep a checklist and go through it before I enter.
#5 Price alerts to decrease screentime
This is something I’ve been preaching for months. Price alerts are one of the most underutilized and overlooked trading tools. Because they are not dependent on charts, price alerts can make a big difference in your trading. Place your price alerts in key price areas to signal potential trades, then close your platform.
This will do two things: First, you won’t miss trades because you don’t pay attention or have a process. Second, you won’t be glued to your charts anymore and you won’t be tempted to do stupid things just because you are bored.
#6 Hack for screenshot collection
This tip is great for technical traders. Start taking screenshots of trade entry and exit. You can quickly assess the quality of your trading if you only trade a handful of patterns. Your trade screenshots may look different if they look inconsistent. Technical traders will only follow one or a few patterns. If you have identical trade screenshots, it is likely that your trading rules are not being followed.
Exit screenshots can help you build confidence and improve your trading. These are the things you should look out for in exit screenshots:
Was it based on the rules of my system or was my emotional reaction to exit my trade?
Are my winners too short? Or could they run for longer?
This is a simple hack that will increase your confidence.
#7 Be sure to know your method inside and out – Trading plan and watchlist
It’s something I do every Sunday. Although it takes me about 3-5 hours to write trading plans, I wouldn’t trade without creating my watchlist and writing down my trading plans. Two things happen when a trader creates watchlists and writes trading plans.
It forces you to think more deeply about your trading system and force you to rethink your approach. If you don’t know what you are searching for, you will quickly realize that you don’t really understand your trading system.
You can see how your trading strategies have performed over time and compare them to the reality of what happened. You might notice that your plans seem accurate, but you are missing trades. This is a sign you need to review your routine and improve your confidence.
#8 What’s really holding you back?
Many traders aren’t sure why they lose money. They believe their system isn’t working or they have the wrong timeframe. Or that their indicator is flawed. They don’t have any way to validate their suspicions and thoughts.
Worse, these doubts can lead to system hopping. Whenever I ask traders if their trading approach has changed in the last few days/weeks I get a yes answer from at least 80% of them. This cycle of traders jumping from one trading method to another, searching for something they don’t need, can go on for years.
You will be lost if you don’t have a good auditing system or a journaling procedure. It’s difficult to improve your performance without a method of recording what you do. You won’t be able to find what you’re looking for if you don’t know where it is. An trading diary will help you see where you’re going wrong.
#9 Journal – The most important tool for serious traders
If you have not given up yet, I am proud of you and you are likely ready to make a difference in your trading. The ultimate tool to distinguish the professional trader from the amateur is a trading journal. It is hard work to keep a trading journal, and I’m the first to admit it.
Journaling my trades allows me to look back objectively at each day’s trading. It hurts to be forced to trade for the 10 th times you violated your rules and lost a lot of money. However, there are better ways to identify the issues in your trading. Many traders shut their eyes and say that there is a better way. Journals are the best lie detectors and hold you responsible.
Self-check: Are you a trader or do you view trading as a hobby?
This is the moment to test it. Are you willing to admit that you are the one who is making mistakes? Do you realize that your trading approach does not reflect your goals? Are you open to accepting that you are not being professional enough? You have a chance of succeeding if you answer yes and are willing to put the tips in this article into practice. You will be rudely awakened if you continue to do the same thing as before and believe that this article is nonsense.