With a New Year also comes new hope and limitless possibilities, which include the realization of newfound trading success. And if you want to know the truth, well, yes, this absolutely could be the year you reach new heights and achieve a level of trading success you could perhaps only imagine in years past!
However, that won’t just happen on its own, and if there are shortcomings in your trading strategy and/or systems, then your road to trading success must begin right there, and right now. Afterall, you can’t expect to keep using the same, faulty systems and achieve different, more favorable results, right?
That’s why we’re going to kick off 2015 by taking a look at whether you’re really set up for trading success, or if factors that are well within your control are acting as headwinds as you continue to pursue your dreams and set your sights on continued trading success in the year ahead.
We all know that brokers are necessary entities that connect traders to an otherwise inaccessible forex marketplace, and for that, they’re invaluable. But don’t forget that brokers exist, first and foremost, to make money, not to ensure your lasting trading success, so it’s ultimately your decision which broker to use, and it’s an important one at that!
Sure, it’s true that reputable forex brokers aren’t going around actively trying to rip you off, but it’s also true that the main types of brokers—market makers and electronic communications networks, or ECNs—have goals that aren’t really in line with yours, so if you stand to achieve more trading success and favorable results by switching brokers, then by all means, you should.
Carefully consider the merits of a broker just like you would an investment or trade idea, and know whether your broker is winning each time you lose, or each time you trade, as that could be the case depending on which type of broker you use.
Do your homework, make sure you’re using a broker with favorable rates, low fees and commissions, and readily accessible tools and support staff to help you trade your best. For starters, check out our list of the best forex brokers, and from there, feel free to ask around and consult fellow traders, but whatever you do, don’t start the New Year with the same, old broker if they are currently failing to meet your needs.
Besides simply “To make as much money as possible,” what are your trading goals, and more importantly, do you have the proper knowledge and tools to achieve them?
Sure, a New Year can be a blank slate for traders, but if you’re coming off a sub-par year in 2014 and don’t have a plan to shore up your mistakes and/or any known shortcomings, you’re no more poised for trading success this year than you were last. Afterall, it’s not like the markets and trading environment change just because the calendar changes, right?
Take a good, clear look at your trade journal, identify your problem areas, and devise a plan to address them. And, if you work with a teacher already—or if you want to now—then you can enlist their help as well.
The point is not to bring old problems into the New Year with you, so this is a great time to focus on continuing education, and with the help of a trained and reputable professional, you’ll be more likely to realize newfound trading success much faster than you would while going it alone.
Perhaps above all else, do some soul searching as we begin the New Year and ask yourself, “What kind of trader am I, or what kind of trader do I want to become?” Having an identity is critical in trading, because it keeps you focused and committed to doing what you do well—your “bread and butter”—and prevents you from going out in search of sub-par set-ups or trades you don’t fully understand.
Think back a short time ago to when we talked about how to profit more by doing less. Once you know what works for you, or the strategies and/or set-ups that produce your most favorable results, well then, be that trader!
If you trade pivots or pin bar reversals on the daily chart, that’s great, then do that, and don’t constantly flip-flop between strategies, markets, and time frames in such rapid-fire succession that you overtrade and take unnecessary drawdowns. By virtually any measure, trading success comes from limiting losses and consistently generating small- or medium-sized gains, so be committed this year to being the trader that comes naturally to you, not some maverick or “jack of all trades” because that’s who you think you should be.
Don’t you just love the renewed hope and promise that comes with a New Year? Now, we can’t be sure of what’s going to happen in the markets, but this we can be certain of: there will be new fortunes made (and some lost) this year.
There will also be traders whose careers take off, and for whom things just really seem to “click.” Indeed, you could be one of those traders, and this could be the year you get to experience the kind of trading success you’ve often dreamed about. But it’s not up to fate, or in the hands of the markets; instead, it’s largely up to you.
Take this time to take stock of what you’re doing with respect to your trading, and as we discussed, shore up your mistakes and problem areas, save and simplify where you can, and make sure you’re really on track to achieve the kind of trading success you covet for this coming year and beyond!