One thing about being a trader, specifically daytrader, is to accomplish financial freedom with the power of scalability. Once you master a sound trading style, you can scale up easily to improve your profit. The important thing is to realize if there is any specific things you are doing with your trading that delay or stop you from making it happen.
Aim For Efficiency
For example, if you have to grind hours after hours and the average profit per hour is not even comparable to a regular job, you have a problem. Your way to engage the market may not be in your best interest. You need to reflect and understand the reason why you are struggling. Specifically, why are you driving yourself to suffer like someone working on a very stressful and unrewarding job?
If you value your time, eliminate the road blocks one by one using critical thinking to see if you can induce a personal breakthrough. Small progress, no matter how small, will put you on track in becoming a more efficient trader.
Changes Come From Within
What a lot of retail traders do not know is how close they are from their breakthrough moment when they give up. Aside from those who got impatient and risk more than they can afford, what stopped the other ones from improving their trading performance is often the lack of focus. I am not talking about the kind of focus you need in front of your monitors when you are trading. I am talking about the focus necessary in the business development aspect of your trading.
Time has to be scheduled, no matter how hectic your trading is or how exhausted you are. If you are still developing your trading skills, or yet to have a stable method to extract money from the markets you trade, make sure you set aside some time every week. Several hours a week is enough in the beginning. It has to be quality time that you can think clearly. Most of the time it has to be done alone because reflective thinking is difficult to do when there is interference from other people.
Rooms For Improvement
The goal with your quiet time is to think or reflect what is going on with your trading.
Evaluate your situation outside of the cycle of fine-tuning your trading method can often lead you to potential new approach to your trading business. There may be ways to improve your decision making process on how you engage the market. There are also changes to the market behaviour due to issues like policy changes and structural changes which require your awareness so that you are well prepared for their potential impacts.
If you do not sit down and think about these issues, you will be stuck within your existing approach and decline yourself the performance boost you could have.
From this perspective, trading is no different from any other businesses – it needs you to put in your best efforts to grow it bigger. Work smarter, not harder.
[DTBpromo]
Great article !
Nice post, thank you 🙂