As a trader, you might reflect on your outcomes of the past year.
You might have struggled in the previous year but there are always chances to improve.
New year always comes with an opportunity so that you can set fresh goals, change your mindset, and dominate your trading.
You can also get rid of the habits that inhibit your progress and can also change the way you approach every trade.
It will not matter whether you are a beginner in trading or you have 10 to 15 years of experience in this field because all you need to do is to write down the goals, and commit to them at the start of the year and then for the entire year.
Learning from past mistakes and editing your trading plan is something that you should be doing from time to time to improve your trading.

Work on the one trading strategy or the chart pattern until you master it

You should strive to master your chosen trading setup by focusing on some of the trading strategies.
You should just study and trade a single price action signal or a price action pattern.
When you get very good at your chosen setup and succeed over a large series of trades, then you can master another price action signal or the price action pattern.
Also, you are supposed to get rid of the temptation to change the trading strategies.
You should be faithful to this one single idea and follow it until you succeed in it.

Try to spend more time learning about trading rather than just trading

During the early days of trading, every new trader will spend their entire time watching the screens of the computer, watching the open trades, and then exiting the same.
Due to this, they have no control over their emotions in the early days of trading.
Many of the new traders will commit this mistake.
They will be spending most of the time on the charts looking for every trading opportunity that they get.
If you are spending all the time on the charts looking for trading opportunities or your current positions, then you will soon end up blowing your trading account.
Instead of spending more time on the charts, you should try to spend your time learning new things about trading.
This will help you to become a better trader and eventually you will also see improvement in your trading performance.

Do not predict the direction of the market

You will analyze the market from two different points of view and they are:

a. Your current open position, and
b. The other position that you are going to take.

Traders will make this mistake because they are programmed to have an opinion about everything that is occurring or is about to occur.
For example, if you buy the stock of Reliance today and it suddenly goes up and on the next day you see the news article which says that Reliance is planning to acquire a certain percentage stake in some other company.
Due to this, there will be a hike in the price of reliance and after listening to this, you feel more confident.
Many of the traders will start to develop an opinion because of such news.
All you need to understand here is to apply a simple theory but will also need a lot of practice to apply it in the real market.
You should take every decision for your trade entry, exit, or anything in between with 100% neutrality.
You should just not get attached to your existing positions.
You should also control your emotions if you wish to master the financial markets.
Next time when you are entering into the trade, then you should not focus on external factors such as news channels, articles, and telegram channels.
You should simply have all the faith in your trading system and you should also trade as per your plan.

Have patience

Patience is very important in every aspect of life.
Without patience, you can never be successful in any field of life.
As per Warren Buffet- the stock market is a device for transferring money from the impatient to the patient.
To be able to get big rewards in trading, you should hold your trades way longer, to the point where your system will be giving you an exit signal.
You should not just get frustrated while trading and just let your trades play out.
You should not be affected by the short-term volatility in the market and also try to hold the trades as long as you can with proper stop-loss trails so as to protect your profits.

Do not miss the trade if your system gives you an entry signal

We all miss the big opportunity but it is also how much of those big opportunities that we miss in a year that will define our profitability as a trader.
Most of the traders are working for the perfect opportunity and when that opportunity is near, they will not enter the trade.
If you tend to observe, all the missed trades will often turn out to be the winning ones.
Every trade has a random outcome as no one can decide whether a particular trade is going to make a profit or a loss.
You will have to keep this thing in mind to be able to build your confidence and you will also have to take most of the trades when your system will give you an entry signal.
So, when your system is giving you an entry signal, you should take that opportunity and try to trade with your trading edge.

Exit your trades at the right time

Apart from missing the good trading opportunities, many of the traders will also miss their profit targets by a few points or their winning trades turned into the losing one’s because their target was missed by some points and then the reversal happened from that point.

Some of the main solutions are as follows:

a. Exit the trade a few points before your planned target level.
b. You can also decrease your risk-to-reward ratio.
c. Taking smaller profits will not make you a profitable trader in the long run but by performing this exercise, you will be able to learn a lot about how you can set your targets.

Pre-define your risk per trade

Capital management is a crucial topic and it will also help you in the long run.
Traders will fail miserably when they do not manage the capital properly.
You should pick a fixed risk per trade and stick to it unless you are sure that you can make money over a long time.
You should not attempt to risk more money over the next trade than the previous one.
You should use a fixed amount that you have previously decided in your trading plan unless you have created your profitability record and you are confident enough to risk a larger amount.
Till then, you should not drift away from that fixed amount.

Always review what you did well

You should make notes of all the things that you did well for a particular year.
This will help you to keep track of the things in which you are very strong.
Staying disciplined over a year is a very difficult task.
So, if you are staying disciplined in some of the aspects of your trading, your result will be positively impacted by the same.

Always review what you did wrong

Generally, traders tend to repeat the same mistake again and again.
They also fail to take a lesson from their mistakes.
So, you will have to make the change this year.
You will also have to note down every single mistake you make while trading.
Once you review where you were wrong, then it becomes easy for you to trade as you already know your mistake and you can easily correct the same.
Most of the trading mistakes can be easily avoided by self-control and by following your trading plan.
This is how you can run your trading as a business.

Update your trading plan regularly

You should update your plans regularly to reach your destiny.
Trading is a lifelong journey so you will have to update your plan from time to time if you just want to become a profitable trader in the long run.

Conclusion

This blog will help you to improve your trading skills and will also help you to dominate in trading.

Frequently Asked Questions

Q1) What is the No. 1 rule of trading?

Always using a trading plan is the No. 1 rule of trading.

Q2) What is the most powerful trading strategy?

Scalping is the most powerful trading strategy.

Q3) What is a bull call spread strategy?

It is a type of options trading strategy that involves two call options.

Q4) Which strategy is best for trading?

Trend trading strategy is the best for trading.

Q5) Who is the richest trader in India?

Radhakrishnan Damani is the wealthiest trader in India.

About Us

Nifty Trading Academy is our academy where we teach you about the stock market and technical analysis. We also provide live trading sessions and upload blogs for the same.

10 ways to dominate your trading