19 Trading Tips for Personal Development
In your career as a trader you go through an extensive process of personal development. In this article I share with you 19 tips which you can apply as a trader as well as in other aspects of your life.
Tip # 1: Measure your trader efficiency
You trader efficiency indicates how well you perform as a trader. You can measure this by adding the number of mistakes you make and divide it by the number of trades you’ve made. You will be amazed how much these few “mistakes” will cost you in terms of “lost” return. There are only a few traders who understand this concept and actually apply it. Reducing your mistakes, and thereby increasing your trader efficiency, can make the difference between consistent losses and consistent profits.
Tip # 2: Surround yourself with other traders
Trading is a lonely profession, but you do not have to go it alone. Of course you will have to push the buy and sell buttons on your own, but you do not always have to reinvent the wheel. There are various investment forums and clubs where you can sign up, either paid or free. No matter how good you are and how much you know, there’s always someone who knows more than you about a particular topic. Learning from other people’s mistakes and sharing your knowledge with others will greatly accelerate your learning process.
Tip # 3: Social commitment
If you want to achieve something very badly it can help enormously to make a public commitment. For example, tell family and friends that you will be working intensively the coming period to become a successful trader. By making a public commitment you create somewhat of a handhold. A promise you’ve made with yourself is often easier to break than a promise you’ve made with your family or friends.
Tip # 4: Find someone who believes in you
Having confidence in yourself is important, but it also helps if others believe in you. Take someone in confidence and explain to him or her what you do. This will not always be easy, because the trading profession is often a difficult concept to grasp for outsiders. They think we sit all day behind the screens, gambling our savings. Unfortunately, this is true for a certain group, but successful traders know better.
Tip # 5: You never stop learning
Knowledge is power, so keep learning. You never stop learning, try to increase knowledge by attending webinars and seminars, for example, or by reading trading or investment literature or find a successful trader to be your coach.
Tip # 6: Invest in knowledge
Investing in your knowledge, network, environment, health and relaxation are the investments that will work best for you in the long term. Traders who dare to invest in themselves will become much more successful with less effort.
Tip # 7: Successful trading is hard work
To outsiders it may look simple but all good traders will agree that successful trading is hard work. Both physically and mentally trading can require the utmost of your capabilities. Trading is absolutely top sport. What you put in determines what you get out.
Tip # 8: Get in shape
Again, trading is top sport. To deliver top performances, it is important that you are in your best shape. Not only mentally, but also physically. The better you feel, the better you will trade.
Tip # 9: Be fanatic
Be fanatic and develop a strong desire to succeed and become successful. Write yourself some goals and targets and develop a plan on how you intend to achieve these goals.
Tip # 10: Make it happen
Success does not fall from the sky, you will need to do something for it. The only one who decides how successful you are as a trader, is you!
Tip # 11: Follow your own path
Unfortunately, there is no fixed route to success. Every successful trader has travelled his own path. Try to learn from other traders as much as possible, but realize that your eventual path to success will be unique.
Tip # 12: Never give up
As a trader you need to have a large dose of perseverance. Consistently making money with trading is not as easy as a lot of parties make you believe it is. Yet it is certainly not impossible for those who are willing to go through a comprehensive learning process and have sufficient perseverance.
Tip # 13: Reward yourself
Trading requires a lot of energy, time and patience, so it’s okay if these effort are rewarded. Reward yourself every now and then when you have achieved something. For example, if you have executed 10 consecutive trades flawlessly, you should reward yourself for it. The reward does not have to be large, it is more about dwelling on the achieved success.
Tip # 14: You are responsible
Take responsibility for everything you do or leave. Don’t blame others for your mistakes. It is not the broker’s fault, it’s not the fault of the market, everything can be traced back to the choices you make yourself.
Tip # 15: Consistency
Be consistent in everything you do, because practice has shown that inconsistencies often cost money. Deviating from your trading plan, widening your stops or taking early profits, will ultimately all cause your profitable strategy to turn into a losing strategy. Consistency is the key to success.
Tip # 16: Embrace uncertainty
Sometimes knowing less is better, also in trading. A good trader can make money in any market. Start each day with a clean slate and be aware that at the start of the trading day you have no idea in which direction the market will move. This will help you to trade what you see and not to trade what you think you see.
Tip # 17: Be creative
Successful trading requires a certain amount of creativity. The markets are constantly changing, no day is the same. No strategy works forever. Technical patterns never look exactly the same in reality as they do in the theory books. All these things demand a certain amount of creativity during trading.
Tip # 18: Recognize self-sabotage
Self-Sabotage is consciously or unconsciously acting against your own interests. All traders will experience this sooner or later. The reasons for self-sabotage are diverse. According to many psychologists is self-sabotage stems from fear of our own success. You might recognize it; every time things are going well, you’ll find a way to screw it up again.
Tip # 19: Grow as you go
Nobody can be considered a profitable trader from his first trade onwards. All successful traders have paid “tuition”, one more than the other… But in order to get there you just have to start trading and dare to make those first trades. It’s trial and error; as with every profession you get better and you do it more often. Grow as you go!
I hoped you enjoyed these trading tips for personal development!