Five Trading Resolutions For The New Year

As 2019 looms large, now could be the perfect time for traders to take stock of the year that’s almost behind us and see if there are some trading behaviours that could be changed to benefit their bottom line. The market can be a fickle beast, but ensuring there’s a degree of structure and discipline in your trading approach may help provide some insulation from market volatility. After all, it seems almost inevitable that the excitable markets we’ve seen return in recent months may well have cause to hang around well into the New Year.

1. How often are you trading?

Remember that every time you open and close a trade, you’re paying away the bid-offer spread to your broker. This may just seem like a small amount, because on popular pairs like EUR/USD AxiTrader typically charges 1.1-1.2 pips to those traders with Standard accounts. Yes, you need to close a trade to realise a profit, but are you over-trading?

Takeaway for traders: Take the time to look through your trade history and highlight the number of trades in a day. Then look at the profitability of each trade versus the spread. Would you be better off leaving a smaller number of trades open for longer?

2. How many instruments are you trading?

Most brokerages give you the flexibility to trade multiple asset classes from a single trading account. That’s a great attribute, but it’s worth keeping in mind that you ought to be across all the fundamental drivers that could impact an asset’s valuation. Even if oil looks like a brilliant buy down at these levels, is there an Opec summit or an independent production update about to be published?

Takeaway for traders: Why not analyse your account history and rank the instruments traded in order of profitability. Are there some which consistently underperform – if so, can you improve the strategies you use, or are you better off just looking at other assets?

3. Are you aware of everything your broker offers?

You’re more than likely trading with your current broker because they’re offering you great execution, great pricing and an honest service – they’re certainly three attributes that sit at the heart of the AxiTrader proposition. But what else does your broker offer that can make your trading experience better? The product may have evolved significantly since you signed up – do they offer automated charting packages like Autochartist? Or what about an incubation program for helping those with a real talent for trading to become even better at doing what they love?

Takeaway for traders: Markets may prove somewhat becalmed over the year-end so why not spend half an hour surfing your broker’s website, seeing what tools and utilities they provide?

4. Keep a trading diary

Yes, this is real back to basics, but what about keeping a record of what you’re trading and why. What was the target entry level? Where did you set your exit? Did you achieve this and if not, what went wrong? Understanding what drove those successful trades can be instrumental in helping finesse your approach in the future.

Takeaway for traders: Make a trading plan. Decide on your target entry and exit levels for each trade, record these then see how your actual trades map out against your objectives.

5. Commit to reading more and learning something new

Whether you’re a fundamental or technical trader, there’s always something new you can learn in the trading environment. Whether it’s the influence of up and coming economic statements you had previously overlooked, or perhaps learning how to build your own EA rather than relying on off-the-shelf components built by others, there’s no shortage of options for self-improvement. Some innovative courses in the market today even provide you with CPD credits on completion or can act as the starting point for receiving professionally recognised accreditation.

Takeaway for traders: Beware of those people offering guaranteed routes to profitability but do check out what educational resources your broker provides, often all as part of the service.

Hopefully you’ve had a hugely successful year of trading in 2018. Regardless however, the mundane markets which dominated for years certainly seem to have disappeared, at least for now. Volatile conditions require a different mindset so why not make the start of the New Year a reason to review your trading approach?

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