Happy New Year to everybody.
Here is my roadmap for financial year 2022. It is simplified version but generally it says everything about what to do.
Plan:
Everything starts from the plan. It is very hard to navigate financial markets without it. As markets move constantly it's very easy to get lost
or become controlled by emotions (fear and greed for example). The trade plan is a tool that helps us. It takes some market knowledge and experience
to develop a good plan and then discipline is needed to follow it. Also sometimes there is a need to modify the plan when conditions change drastically.
Wait:
Patience is essential part of good trading/investing. If you miss some opportunities then calmly wait for another ones - they are always coming.
Execute:
Do what you have previously planned. It is a trade management - also important part of trading. You can be right with timing but without
trade management you could easily see all your 'paper profits' disappear. On the other hand you can be dead wrong with timing but with proper management
it is possible to squeeze more out of that trade than from previously mentioned example.
Accept Results :
Probably hardest part to deal with when things are not going well. People just don't like to lose money but this is part of the game. I always try to think
about it as cost of doing business or the amount of money I need to spend to make myself available for the winning trades.
More info about how to deal with the losses can be found from my earlier posts:
Trading in the Zone
Trading in the Zone 2
Accepting results happily takes some practicing :)
Learn:
Making screenshots from your past trades is best option how to learn. It is also essential part of 'Journaling'. I like to save all my trades with real-time
notes and comments - and then later analyse them.
Repeat:
Becoming good at something in this life requires work and practice. Trading is no different. So process starts all over again - enjoy.
I wish you all the best for upcoming year.
Cheers :)
Here is my roadmap for financial year 2022. It is simplified version but generally it says everything about what to do.
Plan:
Everything starts from the plan. It is very hard to navigate financial markets without it. As markets move constantly it's very easy to get lost
or become controlled by emotions (fear and greed for example). The trade plan is a tool that helps us. It takes some market knowledge and experience
to develop a good plan and then discipline is needed to follow it. Also sometimes there is a need to modify the plan when conditions change drastically.
Wait:
Patience is essential part of good trading/investing. If you miss some opportunities then calmly wait for another ones - they are always coming.
Execute:
Do what you have previously planned. It is a trade management - also important part of trading. You can be right with timing but without
trade management you could easily see all your 'paper profits' disappear. On the other hand you can be dead wrong with timing but with proper management
it is possible to squeeze more out of that trade than from previously mentioned example.
Accept Results :
Probably hardest part to deal with when things are not going well. People just don't like to lose money but this is part of the game. I always try to think
about it as cost of doing business or the amount of money I need to spend to make myself available for the winning trades.
More info about how to deal with the losses can be found from my earlier posts:
Trading in the Zone
Trading in the Zone 2
Accepting results happily takes some practicing :)
Learn:
Making screenshots from your past trades is best option how to learn. It is also essential part of 'Journaling'. I like to save all my trades with real-time
notes and comments - and then later analyse them.
Repeat:
Becoming good at something in this life requires work and practice. Trading is no different. So process starts all over again - enjoy.
I wish you all the best for upcoming year.
Cheers :)