As traders we tend to be only as happy as our last trade. We also are told not to wear our emotions on our sleeves which creates a scenario when things start to get back in one’s trading, a total meltdown unfolds.
This is not the situation you want to find yourself in, no matter how bad your trading might be at present.
What you think and what you feel as a trader will go a very long ways towards the success you experience as a trader long-term. One of the keys to successful trading over many, many years is knowing what you are good at. Every trader has different strengths and weaknesses – that’s how God made us – i.e. unique. For me, I am very, very good at managing risk on every trade I take. I don’t take big losses. I do have losses – any trader has those – but the size of the losses are always kept small. That is my strength; that is what I am known for being good at.
And that is what I build my trading off of. Find the one area of your trading that you are better at doing than anything else that you do, and build your trading around it. If it is nailing precise entry points, then create a strategy that maximizes that strength. If you happen to be really good at identifying the best industries to go long in and the weakest to go short, then exploit that area of strength.
The key is to know what you are good at, and to run with it.
If you don’t know what it is that makes you a good trader, then take some time tonight, and look at the times where you experienced success in the market and find what did during that time that allowed you to trade at your best.
Once you do that, you have a foundation for becoming a better and more profitable trader!
