A new year brings with it a whole range of emotions, from joy and hopeful optimism about what lies ahead, to perhaps some regret about past mistakes. And while all that is perfectly natural, here’s hoping everyone is feeling energised and ready to reach new heights in 2017 trading!
Today, we want to take some time to prepare for another year of trading by looking back at some of the key topics from the year that was, and remind you that plenty of trading ideas are timeless indeed, with application no matter what year it is.
So what follows are three trading themes that we’ve encountered often throughout 2016, and as this year now gives way to 2017 trading, we hope you’ll take a few moments to review all that you’ve learned, and chart a course for a prosperous new year both in the markets and outside of them.
Ensure Strategy & Plan Compliance in 2017 Trading
Earlier this year, I wrote about the need to have faith in your trading strategy, as inevitably, traders will encounter rough patches when they consider—at least momentarily—switching strategies.
New traders are especially quick to want to jump ship and write off their strategy as being ineffective, but in reality, most often their problem is faulty plan compliance, and not a faulty trading strategy.
That’s why we’ve worked hard and often to expose strategic errors that are all too common, and that hurt trading performance. Examples include:
- In May, when we studied some costly pin bar mistakes, which include misinterpreting the chart pattern, and trading pin bars in the wrong market context
- In July, when we examined the concept of opportunity flow, which states that trading opportunities occur randomly, and so do their outcomes. With that, traders mustn’t “talk themselves out of” qualifying trades, even if they somehow happen in close proximity or happen to defy conventional market wisdom
- Way back in January, when we wrote that improper trade timing and weak technical signals can represent a pair of hidden variables that ruin good trade set-ups
Develop (or Simplify) Trading Tools & Techniques
Continuing to develop knowledge and further their trading education will be a stated goal for many in 2017 trading, as it is every year. And while learning a new analysis technique or indicator, or adding a new chart pattern or set-up to their arsenal can be a worthwhile pursuit, so too is simplifying your methods, using fewer indicators, and even eliminating set-ups that don’t perform as well as your benchmark, or “go-to” pattern or set-up.
Articles that were created in order to help traders better assess the merits of different trading tools and techniques are:
- Our debate about whether or not traders should wait for trade confirmation
- The first of many technical indicator profiles, this one discussing the Relative Strength Index (RSI) and its different applications across the forex market and others
- A discussion about seasonal cycles, which, of course, are fascinating trends that do seem to repeat in the markets more often than not, and can be especially useful as confirmation tools or trade-timing mechanisms
Work on the Mental Side of Trading, Too
As a true testament to the fact that trading is (at least) 90% mental, our discussions tended to touch upon healthy and unhealthy thought processes just about as much. Topics such as restoring confidence following negative outcomes, and how to identify hidden biases are a couple examples, but here’s the key point of emphasis and what we’d like to have you carry forward into 2017 trading: Psychology can help determine the quality of your overall trading experience, so make the mental game a big part of your focus in the year ahead.
Psychological “skills” worth cultivating may include:
- Mindfulness, a topic that has appeared frequently in 2016, starting with this feature article from mid-May
- Identifying our own propensity for negative thought patterns, which makes for a good starting point, and finally…
- Positive self talk, which is a goal for which we can all strive, especially those of us who are overly critical of ourselves in trading, as well as in life
Here’s wishing you all a happy, healthy, and prosperous 2017! Most sincere thanks for the journey that was 2016, and we look forward to bringing you plenty of new and exciting things very soon, all of which are benefits you can experience first and foremost when you join the Lazy Trader member community. As always, your no-risk trial membership can be yours just by clicking the below banner.
Latest posts by Rob Colville (see all)
- Trade with The Lazy Trader in 2017! - November 18, 2016
- Round the Clock Trader Live – How to Trade the News - November 8, 2016
- Why There’s Little Room for Expectations in Trading (or in Life) - October 14, 2016