The markets have gripped my attention for the past 28 years. Even after all this time, I still admire the beauty of a trending chart, as if I was looking at a sparkling jewel on velvet.
I know you share my passion.
Ready to make this year your best trading year ever?
I’m going to give you essential advice that I learned from the twin trading schools of hard knocks and sublime victory.
Follow these five essential tips and your trading equity will soar this year…
1) Follow a Written Trading Plan
Let’s be crystal clear here. If you’re trading without an effective trading plan, you’re just not going to excel as a trader.
It’s absolutely essential that you write down how you’re planning to enter, exit and position size your trades. Without this, you’re just kidding yourself if you think you’re handling this trading game like a professional.
2) Develop an archetype
Find your ‘perfect share’ and replicate this look in other charts. That’s how you develop your archetypal trade.
When you close your eyes, can you picture your perfect trade? Can you visualise it?
What does it look like?
Unless you can articulate exactly what you’re looking for, I can guarantee that you won’t recognise the next ‘triple your money’ trade when it shows up in your scan. And if you’re trading already, go back and see if your past trades were taken according to your archetype.
As a trading mentor, I get to see a LOT of people’s past trades. Often the trades they take don’t even remotely resemble their trading plans. So many people don’t enter and exit according to their archetypal trade… and it’s a crying shame.
Here’s a sparkling example of an uptrending chart (ALL weekly). Articulate all of the clues this chart gives you in its early phases and you’ll be able to recognise when the next chart displays those same patterns.
3) Watch your time management
“But you don’t understand, Louise. I’m working SO HARD as a trader. There’s SO MUCH to do.”
I say: “Codswallop”.
You need to separate the time you spend on your own education from the time you spend actually trading.
Of course there’s work involved to learn how to trade. There’s work involved in anything worthwhile in life… becoming a doctor, an engineer, or a plumber. However, trading is the only profession I know of where once you know what you’re doing, you can usually complete everything within 30 minutes per week.
Successful people are brilliant at time management. Although this runs contrary to what 99% of people would have you believe – You have to put yourself above everyone else. If you don’t control your own time, you’re wasting your most precious resource. Using an “I don’t have time” excuse just shouldn’t enter your discussion.
You should change this language to “It’s just not a priority at the moment” as this is probably vastly more accurate, and more empowering.
Prioritize ruthlessly. Most people over-estimate what they can achieve in the short term but under-estimate what they can achieve in the long term.
Ask yourself “What is the most productive and profitable use of my time now?”.
This question will get you focusing on the things that count the most and will have the biggest impact on your year.
4) Learn how to trade short term AND medium term
Years ago, you could park your money in any old ‘good’ share and just wait. Reality check: Now you just can’t do that and expect a bounty-filled future.
Unless you learn how to be a sniper, grab some shorter term profits and move fast, you just won’t get the results you’re hoping for.
There’s always been money in trading the medium term. But if you want to really kick your results into over-drive, the short term trend is where you need to be.
5) Beware of your number 1 enemy
We all know how frustrating the know-it-all brother-in-law or work colleague can be. In fact, if you hang around with those types of toxic people, they might just drag you down to their level. Their words can rattle around in your mind, destroying your confidence and sapping your energy. I talked about this in an earlier ASX article called ‘Five Trading Traps to Avoid’ at this link.
Well… even though toxic people create self doubts in you that are hard to overcome… I can tell you there’s one even bigger obstacle that you’re facing. Something sinister and totally debilitating. A hostile toxic limb that if you don’t hack off, you’ll be lost in the trading wilderness eating bugs for sustenance forever.
This enemy of your success can paralyse you, take away your power, and cripple your results.
(“Oh c’mon Louise… say what the $#^% enemy is already!”)
The number 1 enemy to your growth as a trader is 2 words:
When your mind is full, you won’t take in any more information. You’ll be crippled, blocking out the essence of your genius within.
I’ve seen it first-hand. I’ve seen it with traders who are sitting in a stinky stink hole of stagnation – wondering why they can’t move on.
Maybe you’ve seen it too?
But when you replace “I Know” with “Tell Me More”, you become a sponge ready to absorb. An empty cup waiting to be filled. Try it. It might just get you to turn a corner in your trading business and unlock your ankle cuff.
You have drive. You have ambition. You have desire. This year can be your richest year ever.
Follow these five tips and you’ll be one step closer to achieving those dazzling trading results you’re seeking.
About the author
Louise Bedford (www.tradinggame.com.au) is a full-time private trader and author of several best-selling books, including The Secret of Candlestick Charting, Charting Secrets and Trading Secrets. Get the results you deserve. Grab her free Trading Plan Template, by clicking here.