As the year comes to an end, it’s an important time for a trader; it’s time for him to make an honest assessment of his trading performance over the last year. This is an excellent opportunity for you to learn and grow, both as a trader and a person.
According to researches, only 10% of the forex traders go on to achieve huge profits whereas 90% traders incur losses. As we move forward in the article, we will be discussing the different ways which can help to trade in improving his trading skills in the new year.
The first thing a trader should do for this end-of-year trading assessment is to take a week off from the markets, ideally two weeks, completely off. Don’t look at the charts, don’t watch trading channels, and don’t do anything trading-related apart from reading and learning of course, for at least one full week.
It is vitally important that you physically and mentally remove yourself from the market over this one or two-week period, if you don’t, then this whole exercise, outlined above won’t work. You need a clean slate to start off the new year in the right way.
A list of Pros and Cons of the last year
During your time off from the market, a trader should sit down and write out a ‘Pro and Con’ list of his trading performance over the last year. He may want to review his trading account history before doing this, or he may not want to do it, it all depends on the trader. Whatever he does, he has to be very honest about each pro and con. If he lies or cheats, he is only hurting himself.
This pro and con list is basically a checklist of things he did right and wrong over the last year, and if he does it honestly and correctly, it should give him a nice list of what he needs to change to improve his trading in the new year. Trading is all about learning and growing as both a trader and person, and if he is not honest with himself about mistakes he has made, he is going to have a rough trading road ahead.
Taking Advantage of the clean slate
Finally, as bad as a trader might think his trading performance was in the last year, he is going to have to try and forget about it and move on. There’s no sense in stewing over what’s already happened and what “might have been,” as long as he acknowledges the mistakes he made in the last year, and he is actively attempting to correct them in the next year, he is on the right track.
Many traders get depressed and frustrated after losing money in the market or blowing out their trading accounts, but if they want to become a successful trader they have to act and think like one, and there’s no room for negativity and self-pity in a successful trader’s mindset.
He needs to use the start of the New Year as a springboard to proper trading. Understand, however, that it will not necessarily be a quick and easy ‘road to riches.’ He needs first to develop the proper trading habits and focus on becoming a good trader, Then the money will follow.
Unfortunately, most traders approach trading from the opposite direction; they are worried too much about profits and rewards and quitting their jobs too early in the game before they’ve developed the trading habits and skills that will allow them to achieve those things.
What happens next is not pretty; their desire for profits and success in the market is so much stronger than their desire to do what is necessary to achieve those profits and success, that they inevitably end up losing money and blowing out trading accounts.
Many traders have these failures because they are trying to “force” the trading success instead of putting in the effort to learn how to trade properly and develop their skills so that the success eventually comes naturally and so that it won’t be fleeting.
A trader cannot focus on remaining persistently disciplined in the market if he is constantly second-guessing his trading method and strategies or confused by all the indicators on his charts. Now is the time to start with a completely fresh trading mindset, and price action trading is, according to researches, the best method to assist a trader in cultivating and maintaining this mindset for the new year and many years to come.
A new year is always the time for a fresh start forgetting about everything that happened in the last year but learning from it. A trader, if follows the pointers as mentioned above, can significantly improve his trading game in the new year with, hopefully, profits to follow.