Notes About Improving Your Trading Results
Notes About Improving Your Trading Results
Today we are going to provide you with the most important notes to help improve your trading results. Let’s get right to it and help you win some trades.
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Even Pros Struggled in the Beginning
One of the things that you need to keep in mind as a beginner trader is the fact that you are going to suffer losses, especially in the beginning. The process of improving your trading results is a long and hard journey. Now, we are not saying that you might lose a trade every now and again.
Actually, what we are saying is that in the beginning, you’re very likely to suffer heavy and consistent losses. The simple reality is that as a beginner trader, you are going to make lots of mistakes that will lead to big losses. In case this hasn’t happened to you yet, don’t lose faith, because you will end up losing a whole lot of trades in the beginning.
That said if so many people suffered heavy and consistent losses in the beginning, then how do they become profitable traders? How do you go from losing so many traits to being a great trader without giving up in the meantime?
Well, one of the things that many people do to improve their trading results is to start by demo trading. You can use demo trading accounts to trade in real live market conditions without actually risking real money. This will allow you to practice your trading skills until you feel confident enough to start using real money.
However, just be weary of demo accounts because they don’t come with any risk. Many newbie traders looking to improve their trading results will trade irrationally and take on way too much risk in demo accounts. This doesn’t properly prepare them for real live trading with real money. Get away from those demo accounts once you feel confident enough to start trading with real money.
The trick here is that even if you just have $1000, you want to treat it as though it was a much larger sum, as if though it were $100,000. You will improve your trading results via practice, and as you go, you can add more money to your account.
The fact of the matter here is that risk management is very important, so you don’t want to invest too much money for trade. If you treat your trading account like a business, then it’s going to reduce your risk of suffering from heavy losses. Just don’t lose faith if you suffer from consistent losses because you will be able to improve your training results and things will get better.
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Know Everything About a Trade Before You Place it
In terms of improving your trading results, there are three things that you should always know before you enter a trade. You want to know how to exit a trade when you were wrong about it. You also need to know how to exit a trade when you were right. Moreover, you need to know what your trading criteria are, and when to enter a trade when those criteria are met.
If you have answers to all three of those questions, then improving your failing results should not be a problem period however, if you don’t know the answers to all three of those questions, then you’re going to be in some pretty big trouble. These are not questions that you want to be in the process of answering as you are in the middle of trades.
The simple reality is that beginner traders often know when to enter a trade, but not when to exit it. For this reason, many traders become investors, because they don’t have to exit trades. The bottom line here is that you need to know what your criteria to enter trades are, and you need to know how to exit them, both when you are wrong and when you are right.
In order to get good at entering and exiting trades, so you can improve your trading results, we definitely recommend doing some comprehensive research on proven trading strategies. Moreover, to improve your trading results, having an actual education for trading is ideal. With a good trading education, you can learn about the best trading strategies out there, and this will help improve your trading results.
Manage Your Trades & Your Trading Account
In order to improve your trading results, yes, managing your trades is important, but that’s not the only thing you need to manage. You also need to manage your trading account. Money management and managing a trading account is one of the most important aspects that will lead you to improving your trading results.
Moreover exactly how you manage your account and your money really depends on your exact circumstances. Things often change, and you therefore need to be able to adapt and improvise. Of course, managing your risk levels when you only have $100 to spare is much different than when you have $10,000 to spare. What you need to know here to improve your trading results is that there are three main ways to help manage your trading account and your risk levels.
- As a rule of thumb, you never want to risk more than 1% of your trading capital on a single trade. Remember that you do need to adapt. If you are doing really well, but you can risk as much as 3% of your trading capital onto single trade. However if you are not doing well, then only risk is 0.5% of your capital on a trade.
- You also want to pay attention to how many trades you have open at once. Improving your trading results is not easily done when you have too much to keep track of. If you are doing day trading, which means that you have to pay close attention to your trades, having more than three or five trades open at once is not going to be easy. However, if your trades are very long term and will be open for weeks or even months, then you can have 15 or 20 open at the same time.
- The other thing to keep in mind here is that when you have a drawdown of over 40%, that you do want to take a step back and assess the situation. If you lose more than 40% of your overall trading capital due to heavy and consistent losses, you need to stop trading totally, take a step back and reevaluate your trading strategies.
Improving Your Trading Results – Final Thoughts
The final thing to take note of here in terms of improving your trading results is the fact that if you have lasted for a full year, then you are successful period now, this is true whether you have been winning consistently or suffering from losses.
The fact of the matter is that if you have not lost all of your trading capital yet, and you are still going strong, and even if you have been suffering losses, you can still be considered successful.
The reality here is that most traders fail in the first few months and give up delete. Within post therefore, if you had not totally given up and you still have money left after a year of trading, it is a sign that you are doing something right. If you have not given up after a year of trading, then you are on your way to success.
The other thought that we want to leave you with today is the fact that having a vivid trading education is essential. Simply put, improving your trading results is much easier when you actually know all about trading strategies, indicators, and much more.
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