One among the more necessary themes that now we have discussed before is the necessity for traders (especially the newbies) to concentrate on the method slightly than the profits.

The thought is that a very good, disciplined trader could at all times turn the percentages in his favor if he has honed his skills enough to cope with whatever scenario is thrown his way.

But becoming a greater trader isn’t as easy as reading the School of Pipsology after which taking as many trades as you possibly can with the hope that have will teach you the method to profitability.

In truth, many traders can’t even move on from one or two issues that they’d like to handle let alone improve their skill sets.

In the event you end up having to work on the identical set of trading issues or problems month after month or yr after yr, you then is perhaps guilty of considered one of the scenarios below:

1. You don’t have concrete plans to handle them.

Keep in mind that a goal with out a plan is only a wish. Solutions to your trading problems shouldn’t be like your Latest Years’ resolutions that you just ignore almost as soon as you write it in your journal.

Whether it’s something so simple as not placing stops or jumping on a trend too early or something more complicated as cutting winners and letting losers run, you’ve to have concrete plans if you should successfully battle your trading issues.

Set trading goals that work. List down concrete steps you possibly can take and set a schedule to make sure that you follow them through. Set metrics to make it easier to gauge your success if that helps.

2. You’re not actively fascinated about it.

You possibly can have essentially the most detailed game plan and still fail to fulfill your trading goals should you don’t consciously work on them with every trade.

Let’s say you’ve decided to base your position sizes in your account balance as an alternative of using fixed units. Your plan is to compute for every position before entering a trade. You give yourself a pat on the back since you manage to do it for per week.

But suddenly, an intraday trade opportunity popped up and also you’ve chosen to fall back into the habit of setting fixed position sizes slightly than miss the move.

You almost certainly thought “Eh, I’ll just return to working on my goal in my next trades.” And, since you won your trade, you’ll think “no harm done” and sure do it again in the long run.

These little cheats and breaks that you just give yourself won’t affect you within the short-term, but they are going to eventually add up to interrupt your momentum. The following thing you’ll be listing “use dynamic position sizes” in your goals again next yr.

3. You’re not tracking your progress.

Perhaps essentially the most common reason why you possibly can’t address your trading issues or meet your goals is that you just’re not tracking them.

Similar to chefs list down the adjustments that they make on their recipes, you must also track and evaluate your progress.

What have you ever done thus far? Are you closer to your goal today than you were a few weeks ago? Which aspects help and which of them must you be careful for? How will you improve faster? A trading journal is ideal for this purpose.

Recurrently revisiting your progress not only gives you a “cheat sheet” in case you slip and fall back into old habits, but it surely also helps put your trading goals in your thought process while you trade.

Keep in mind that trading is a marathon and never a sprint.

If you should trade for an additional day until you grow to be consistently profitable, you could learn how you can successfully address your trading issues and get into the habit of working on (and meeting) your trading goals.

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