MoneyMunch

What You do to Become a More Consistent Trader?

So what can you do to become a more consistent trader and increase your profitability?

1. Think of trading as a business and have a trading plan.

2. Make sure that the strategies you select, match your personality so you can follow them.

3. Have a realistic expectation of what your returns are. Include all the costs associated with your trading business.

4. Have an idea for your risk/reward ratio. Don’t confuse trading with gambling. If you are increasing your position, make sure that your strategy warrants it.

5. Have trading rules and follow them. Think about them as contingency plans. Because when your emotions are very high, the tendency is that you make very poor decisions that can cost you your account!

6. Be flexible to the market conditions. When you see the market as it is, you have a much better chance of managing your portfolio and increasing your profits.

7. Take responsibility for your results. Taking responsibility does not mean that you have control of everything that happens. It means that you have a choice of how to react to the things that happen.

8. Find out why you are in the trading business. If it is for the excitement of it, find other hobbies or activities that you can get your excitement from.

9. Keep track of your performance. This is a way of objectively looking at how you are doing, what you did right and what you learned. Be gentle with yourself.

10. One of the most important things that people don’t handle is their Emotional Risk. When emotions run high, the quality of decisions goes down. It is very important to learn how to react to your emotions and thus increase your profits.

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