5 Trading Resolutions to Boost Your Trading in 2020
Education - | 17 Dec 2019
As we approach the new year and market volatility is likely to decline between Christmas and New Year´s eve, it is a good moment to reflect on your performance in the past 12 months and set a few goals to make the new year a more successful one. Markets are ever-changing and continuous learning is crucial to stay on the top of your game.
Let´s have a look at a few ways of how you could improve as a trader in 2020.
- Have clearly defined goals
Every trader wants to make money, but the important question is: How will you achieve it? Jumping from strategy to strategy without a clear plan will never make you a successful trader. It is important to define what you wish to achieve and set realistic targets for yourself. This does not need to be a monetary goal – e.g. “I want to make a 20 % return in 2020” – but it can be goals such as “I want to learn more about MQL5 programming” or “I want to improve my risk management skills”.
- Start keeping a trading journal
To make progress, you need to document your observations and analyses about the market, your strategy and your behavior. While the task of keeping a journal might seem tedious in the beginning, with time, it will prove to be a valuable tool that can help you improve and gather valuable insights.
- Keep being curious
Even if 2019 was a successful trading year for you, there is no need to rest on your laurels. Stay curious and explore different strategies and trading styles or test new indicators. No strategy will work forever, and you might find some tools that can give your performance a boost. You could set some specific goals such as:
- I want to read three trading books about the following topics: ________
- I want to learn more about the following types of indicators: ________
- I want to learn more about MQL5 programming by studying the following websites: ________
- Simplify things
Do you barely see the candlesticks from all those indicators that you have planted on your charts? Does your daily trading routine feel exhausting and you do not even know where to start? This might be a sign that you have overcomplicated things, and need to re-evaluate what you really need in your trading and what can be removed. You might have two indicators that provide the same or similar information, or you might need to simplify your daily trading routine by removing some portals you are visiting.
Diversification can be achieved in different ways:
- You could have different strategies ready for different market environments (for example, some strategies perform only well in trending markets, while others might only work when markets are stuck in a range)
- You could expand your trading horizon by testing how your strategies perform when trading different asset classes (for example, if you have been a long-time FX trader, you might want look into trading commodities or stock indices)
- If you trade only during a specific session (e.g. Asia-Pacific session), you could look into trading during the EU/US session if possible, and test how your strategy performs during those times
The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
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