Tips Toward A Prosperous New Year

January 14, 2019 / By Nick Radge / Beginner Traders

A prosperous new year: prosperity and happiness are the 2 things we toast when seeing in the new year. As a trader you may be particularly keen on prosperity.

Many new traders believe there is a Holy Grail. A magic indicator. A rock solid metric. A particular setup. Some think there is a secret.

Letting go of this mindset is very difficult.

New traders go from newsletter to newsletter, forum to forum, expert to expert.

Looking for that guaranteed system that will set them up for life.

Yet there is no such system.

When you arrive at this conclusion, you’ll be more than halfway toward trading success.

Sometimes it’s what you don’t do as a trader that makes you successful.

Let’s look at things NOT to do in the new year…

Over trading – it will come back to haunt you when markets turn for the worst. Learn when to be involved and when to stand aside.
Trading with emotion – whether it be revenge trading to recoup a loss or during times of personal turmoil. Take a break. Come back when you’re thinking clearer.
Having a personal bias – shut that ego down! Always remain neutral and open to being wrong.
Over complicating things – having a million indicators on your charts does not equate to trading success. Remember that profits aren’t made from indicators. Keep it simple.
Taking big losses – markets can gap unexpectedly in either direction. Correct position sizing and vigilant risk management will restrict account blowups.
Never wanting to take small losses – this is the downfall of many novice traders. Admit the trade is wrong and do it quickly.
Focusing on win percentage – this is not important. Focus more on win/loss ratios and cutting your losses quickly and letting your winners run.
Always wanting to know WHY – you’ll end up in a straight jacket if you always need to know the reason why a stock or market has moved in a particular direction. Price action is never wrong. Just follow price and forgo the need to know why!