Comfort zone. That is probably where many of us (traders) ended in 2017. With better-than-expected economic reports contributing to stock rallies in the United States, Europe and Asia, a tax reform that boosted financial components of the world’s top indexes.
And if that wasn’t good enough, Bitcoin and other cryptocurrencies correcting to the downside from all-time highs but leaving many with pockets full of cash on the way.
Last year was not bad, not bad at all (in terms of trading). And 2018 seems to follow that same trend. Since December, American stock indexes have added 13 percent, isn’t that nice?
Now of course, there are twelve difficult months ahead of us. But as a famous Spanish proverb says “Who hits first, hits twice” and in this case those would be buyers.
Let’s face it: you cannot make markets go up or down. Specially if you are a retail investor AND you are wearing ugly flip flops while trading from your garage (and I know you are). No long faces, you can still improve your trading. Just add these 3 resolutions to your New Year list:
Set stop loss / take profit orders
Setting stop loss / take profit orders for your positions would significantly help you to manage risk in a more effective, professional and responsible way. Remember that these levels should not be too close to the real quote or otherwise your position might get closed unnecessarily.
Keep learning
Everything changes. And very fast. To stay on top of the game you should keep learning about new instruments, trends and ways to improve your strategy with an active approach.
Be more self-exigent
You were a total beginner. Now you are not. If you have started trading three or more months ago, then it’s time to say goodbye to your demo account and find yourself a real account that would allow you to trade with a small capital. You could even open a cent account.
