The trading world is constantly moving, so it’s never a good idea to rest on your laurels. There are always ways to improve, whether it’s your strategy, your mentality or your industry knowledge.
In this blog, we’re going to look at some of the different techniques and approaches that can help you become a better trader, from things you can work on by yourself, to approaches that focus on input from a mentor or support network.
Understand your software
When you first started trading, you may have focused on a couple of main charts and tools in the software to help you get your first strategy worked out, and then simply worked from those charts and tools.
While we don’t deny that tailoring your strategy with the tools and charts that are useful to you is good practice, you should also consider the rest of the tools and charts that your software has on offer. There could be a particular tool that may change the way you trade, or the way you work out your strategy, meaning that your progress and success could increase.
Understand your market
Chances are that you have one strategy that works well in the market you focus on and you have been developing that since. However, while that focus will have worked well for your first strategy and trades, it’s important to know more about your market in general so that you can more accurately predict how it will behave.
If you’re following the forex market, understanding the risk factors and analyst estimates is a good place to start. If you’re heading into the stock market, you’ll need to find out more about the management, products, competitors, strategy, financial statements, earnings guidance and inventories of the companies that you’re buying stocks in.
By focusing on one market, and becoming an expert in it, you’ll be able to more effectively use your knowledge and expertise to make your trades as successful as possible.
Find a trading mentor
A mentor can be one of the best ways for you to become a better trader. This kind of partnership can allow you to better understand both your strengths and weaknesses as a trader from an outside perspective. Mentoring can help you understand where you need to improve your techniques and allow you to talk about your processes with someone who is more experienced.
Reviewing your trades with a mentor can help you see the bigger picture of your trading development and therefore make it easier to highlight what is going well and what needs work. Mentors can also help you work on managing your emotions, so that they don’t cloud your judgement while trading.
If you’re looking to connect with a mentor who can help you become a better trader, why not take a look at the mentorship programmes that we offer at Trading College. We can offer trading support, teach you more about how you can move towards trading full time, and help you gain that financial freedom you’re looking for.
If you’d prefer to communicate in a group, finding a support network of other traders can really help to give you a strong support during a quite solitary endeavour. Your support network will be able to offer advice and help based on their own experiences, and you’ll also be able to assist with their trading while learning at the same time.
Focus on consistency
Consistency is one of the key practices that you should focus on while trading. When creating and executing a strategy, your focus should be on making sure that the strategy is repeatable and able to be used for many different trades. This can be tailored through continuous practice and back-testing to make sure that your strategy works in multiple situations.
Inconsistency in your behaviour, such as jumping onto a trade for which you haven’t created a strategy or rethinking your strategy whenever you don’t earn as much as you did the week before, can damage your trading more than you may think.
Instead, it’s important to look at the bigger picture to understand how your strategy is working across a longer-term period and see whether you are using your strategy for the right trades. Read more about how to implement consistency into your trading behaviour in our blog here
If you’re looking to become a better trader, we’d like to help. We offer both courses and mentoring opportunities to help you improve your trading with skill and confidence. Come along to our free* Learn to Trade Live one-day course on Saturday 9th February 2019 in London, Saturday 9th March 2019 in Manchester to really get your foot in the door! See here for more details: Learn to Trade Live
*You will pay a £50 refundable deposit to secure your space for the course, which will be refunded 48 hours later as long as you attend.