- Plan your trades in advance and follow through
Knowing the open and close price for your positions is what good traders do in advance. This helps against impulsive decisions that usually don’t take all factors into account.
- Keep a diary
Record your trades in a file or on paper. That way you can go back and see what decisions you made. A simple list when you opened trades, when you closed them and writing down the reasons you did it will help you go back and see both your mistakes and what you got right.
- Find sources of relevant information, ignore the rest
Every day is full of news and constant coverage of every single little ripple of new information. Most of it is noise that you have to ignore. Filter it just like the Elliott Wave principle suggests and you’ll have a clearer picture of the markets.
- No trading after a big loss
We’ve all had trades that have gone horribly wrong. But that’s part of trading and it’s what you do after that counts quite a lot. Avoid trading when angry or frustrated. Monitor yourself and don’t try to fight the market to regain your losses. If you do, you could make even more mistakes leading to even more losses.
- Focus on winning
Don’t go for the next big thing when it comes to trading. Some new signal system, some select group of gurus in a Telegram group. Find what works for you and improve it. Most winning traders use only one or two styles of trading. Changing your way of trading all the time makes it harder to fully understand a trading style. Use your experience to its full advantage.
- Keep a fit mind and body
Trading is like racing, but it happens on a mental level. Successful traders know that they need to take care of their body because that is directly correlated with decision making, attention span and even physical endurance when trading for longer periods. Staying all night just to look at a chart won’t guarantee money. It just exhausts you and increases the chance of wrong decisions.