HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

Six New Year Resolutions for Traders in 2023


The year 2022 is coming to an end, and the time has come for a fresh start in 2023. The end of the year is a great time for traders to review their 2022 trading performance and reflect on how they’ve fared in the market. To take advantage of the ‘clean slate’ that comes with the new year, here are 6 new year resolutions traders can consider in 2023. 

Enforce a trading plan 

Traders may draft a trading plan according to their needs and characteristics. A trading plan is an outline that is properly researched and documented by traders to help guide them in their trading decisions. Such trading plan should outline how traders identify an asset they want to trade, the purpose of the trade, and even the entry and exit point.  

Each trading plan is unique and is built in a way that suits the trader’s trading objective. As the trading plan is built on the trader’s trading goals, traders must be disciplined and stick to the trading plan. A trading plan helps to ensure that the trader knows his steps to take, stays objective with his decisions, and would be less affected by psychological changes or market movements.  

The trading plan can include setting a suitable entry price, exit price and stop loss for each trade, even before executing the first move. This helps traders to avoid getting swept up by their emotions when the active trade faces price movement, as they already have a target price in mind for all scenarios. Sticking to the trading plan will also help eliminate traders from second-guessing their trading decisions. 

Set a stop-loss for each trade 

Even the most well-planned trade can result in losses. Hence, knowing when to cut those losses is a critical part of becoming a successful trader. Traders can often hold on to losing positions in hope that the price will bounce back, but sometimes, these losses could grow bigger, especially if the asset continues to fall. For example, when a trader buys a stock at $100 and sells it off at $90, this represents a 10% loss. The trader would need to trade a stock for an 11.1% gain with the remaining $90 to get back his breakeven capital of $100. However, if he held on to his position and sold the stock at $80 instead, this represents a 20% loss, requiring a 25% gain using the remaining $80 in order to break even. 

This shows the increased difficulty to break even from a greater loss. Consider using the stop-loss function when trading to avoid this scenario and set a price target you are willing to take the loss at. This can be a percentage decrease, or a specific price that you determine.   

Diversify Your Trading Portfolio 

Try diversifying your trading portfolio. Having more positions in the market, across different asset classes, can help to potentially reduce the risk your trading portfolio faces. To diversify your trading portfolio, you may trade several different markets, and also utilise different investment products. Traders can diversify their portfolio among products like CFDs on stocks, bonds, commodities, funds, real estate and cash; or you can even diversify your portfolio within an asset class, such as selecting different types of stocks including large-cap stocks, growth stocks, blue chip stocks and defensive stocks. How a trader diversifies their portfolio is entirely up to their risk appetite and trading goals. 

Employ Risk Management Strategies 

As a trader, improving risk management strategies can be beneficial as it helps traders minimise their exposure when trading. There are various ways a trader can manage their risk, such as not overleveraging their trades. While leverage has the potential to help traders increase earnings, it can also increase potential losses. Using higher leverage on your capital means taking on higher risk, and hence, traders should look to leverage only what they can stomach. 

Traders can also use trading tools such as stop-loss or setting a daily loss limit (DLL) to help in their risk management strategies. These tools are great in helping traders to minimise their loss when trading. It’s important for traders to determine their DLL as every trader have a different risk appetite.  

Improve on Technical Analysis Skills 

Make a plan to learn new technical analysis skills, trading strategies and indicators. Traders should constantly strive to improve themselves as the market conditions are ever-changing. Traders can join a trading community where traders share their indicators, moves, and skills. These discussions on how each trader executes their trades or what signals they are looking for will further improve your trading knowledge. 

Traders can also enrol in educational courses to improve their technical analysis skills. There are many things that traders can still learn from and improve on, even if they have been trading for a long time. These courses will help you better analyse the charts, use the right indicators, and potentially improve your trading success rate. A better understanding of technical indicators will also help traders plan their trades more confidently. 

Here are some of the key technical skills that a trader could learn more about:  

Make it a point to keep up with the news 

As a trader, keeping up with the latest market news can help traders to manage their trades better. It is important to understand how market news will shift the market, and whether market volatility will come along with that news.  For example, in 2022, the Federal Reserve has raised interest rates multiple times throughout the years, and the stock market always moves accordingly to these announcements [1].  

This is because the higher interest rates will make it more expensive for financial institutions to borrow money. This has a downstream effect where financial institutions also charge companies higher interest rates for loans. Companies would then cut back on their borrowing to further expand their businesses, potentially lowering expectations for growth, therefore lowering the price of the company’s stock.  

Traders can use broker apps and platforms to help get all the latest economic headlines and indicators to ensure they keep up with the news. Having an economic calendar readily available can also come in handy. Traders can also tap on social media platforms to stay up to date with the latest happenings. Traders can also follow Vantage on Instagram or TikTok to get all the latest market updates. 

Conclusion

Listed above are just some new year resolutions that traders may consider  following in order to improve themselves and their trading crafts further. To help with some of the trading resolutions, such as improving traders’ technical analysis skills, traders can open a free demo account with Vantage. It allows traders to practise their technical analysis and try out different trading strategies and techniques without risking their own capital. In addition, the demo account will allow traders to get a chance to test out trading different CFDs products such as forex, commodities, stocks and ETFs. 

#source


RELATED

A brief history of Forex

When you think of forex today, you likely conjure up an image of a flat-screen digital device full of real-time figures, fluctuating graphs, notifications...

How To Become A Successful Trader In 2023

In today's world, trading has become an attractive career choice for many individuals looking for financial independence and flexibility. However, becoming a successful trader requires more than just basic knowledge...

Reading Forex Charts: Decoding Patterns, Indicators, and Informed Decisions

In the world of forex trading, understanding price movements is paramount. Forex charts serve as the canvas upon which traders analyze historical and current price data to make informed decisions...

Forex vs. CFD: Which One is Better?

Probably, every trader has faced the abbreviation CFD. But if you ask what this means, in most cases, the answer is: it's something similar to Forex, only for stocks...

Real Forex Trading: Find Out What All the Fuss is About

The market for trading forex or foreign currencies is known as foreign exchange trading, or forex trading or FX. The largest market in the world, forex, and what happens in it, influence real, everyday life...

The Ultimate Guide To Stock Investing For Complete Beginners

There`s hardly a single person today who has heard about the passive income that investing can consistently bring in. There are many examples: from the great financiers...

What is risk management in Forex?

Risk management, also known as money management, refers to a number of trading techniques employed to lessen risk exposure. Being affected by various factors...

Bitcoin vs. Litecoin: What You Need to Know

Cryptocurrency can seem like a daunting concept. Over the past decade, interest in cryptocurrencies has increased exponentially. Bitcoin (BTC) has continued...

MetaTrader4 vs. MetaTrader5

A trading platform is basically a workspace for traders, their work environment. The quality of trading depends on its functionality and convenience. Many market...

Bitcoin: secrets of profitable trading

Bitcoin: although this currency is virtual, many people earn and have already earned real millions of dollars thanks to it. More than 1,000 people...

A Beginner’s Guide to Bonds – How and Where to Buy and More

Besides forex and stocks, bonds are another popular class of securities that attract many investors. In fact, bonds are traditionally a core component in many types of portfolios, most famously in conservative strategies...

What is Copy Trading and how does it work?

Are you interested in trading the financial markets but feel like you don’t have the time to learn new strategies? Maybe you already trade but can't find a way...

Best Day Trading Laptops in 2023

When discussing the requirements for successful trading, pro traders often mention having the right tools. A quality laptop is among such tools. A trader needs a good laptop just as much...

What Is a Stock Index?

A stock index is used to describe the stock market's performance or a specific part of it and compare the returns on investments. In general, an index uses a weighted average of stock prices...

How to trade Forex: fundamental insights

The world of trading is diverse. There is a multitude of assets for investments: you can start trading commodities and try your chances with CFDs, or you can...

What is a Fan Token?

With the invention of social networking sites such as Facebook, Instagram, and YouTube, you can now engage and connect with famous people continuously. The cryptocurrency industry...

How to Trade Major Currency Pairs

The major currency pairs traded by forex traders around the world are the following: EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, AUD/USD, NZD/USD...

What Is Forex Trading? The Basic Input You Must Know

You have heard about forex trading, but do you know what is forex trading? Trading, no matter how lucrative people tend to talk about it, Forex isn't easy...

Can Brokers Really Manipulate Market Prices?

The trading realm is rife with tales of broker manipulations causing devastating losses. With a plethora of platforms available, how can traders discern between genuine...

Risk Management on Forex: Basic Rules

Senior traders would say that there is no chance to build a successful career without risk management. Whatever your trade duration is, the trade should...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.