3 Trading Tips you Need To Renavigate

Trading Journey

At the start of your trading career, you were probably told that you can make a living from trading the financial market. As you continue to grow and develop yourself in this area, you realised that the path to growing wealth becomes challenging and, for some, they decide not to continue this journey and they start finding alternative income stream. I truly understand that trading is not for everyone. While I am not in the position to decide who is capable or who is not, I know for certain that trading for a living is not for the frail or impatient.

The fact that you are still reading this and you are still learning to trade, I think you are doing well. If you are still trying hard and you did not ignore your dream to become successful, I applaud you for your courage and desire to become a great trader. However, sometimes working really hard aimlessly towards success may not be the right thing to do. More often than not, it is worth looking at where you are now before you continue on the road again.

If you have been trying to become a successful trader for more than 12 months, then I hope to share some useful tips that may help you sooner or later.

1. Find the Ground before you Start the Climb

If you have been trading for awhile now and you cannot see the light at the end of the tunnel, then it might be worth taking a break. Take some time out from your charts and trading to revisit where you want to go and to understand how you want to get there. Sometimes, traders get so engrossed in their daily trading that they forget that there are more benefits from clarifying your personal road map and trading plan towards trading success.

Just like a professional mountaineer, they can be strong and skilful in their climbs. However, they too need to take a break from their climb so that they can re-navigate every now and then to make sure that they are on track. Unlike new climbers, professional mountaineers have the map on the back of their head throughout the journey. As soon as they are uncertain of their path, they stop to recoup and to read the map.

As you continue to climb those steps to become a professional trader, you too should learn to stop and re-navigate your map.

2. Back to Basics

Trading BasicsTime and again, traders forget that the most useful trading lessons are those that they learnt in the first few months of your trading career. The most useful lessons of trading has always been those that you learn in your basic trading course but new traders often struggle to full appreciate those lessons until much later on.

For example, my first price action lesson was Price Cyclicity – if you don’t see a text book price cycle, then the probability is high that price is not healthy and that should be an indication that there is no trading set up.

When I started trading, I probably understood what that meant but I never really appreciated the significance of trading in a less directional market until much later. In fact, the longer I traded the market, the more I realise that I should only be looking for strong momentum trades because the reward of doing that makes my time and money worth my investment. My Return on Investment (ROI) is not just about the money, it is also about the amount of time I spent managing a trade.

You see, when I revisited the basic lessons, it wasn’t just about those lessons but it was about gathering all the information I have in my unconscious mind. Everything that you’ve learnt between then (my first trading course) and now will start to make sense too. Surely you can see that the benefits are invaluable, can you not?

3. Learn to Take the Money (TTM)

Let’s face it, if you have been trading for awhile and if you have spent a lot of time learning different trading systems but still not making a decent profit, then you should also realise that the system is only a system and it means nothing if you don’t learn to take money out of the market (assuming you have a good entry methodology). More importantly, taking money from the market is a great way to improve your visibility of where the end of the tunnel is located (as mentioned in Tip #1)

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Trading-take-the-moneyThis was a very useful advice and reminder that I got from a mentor and a friend. In fact, this was also the same lesson that I learnt in my first trading class. The coach that I had in my first basic trading course was shouting TTM every hour in the course and he made great emphasis on the point of taking money from the market.

However, I never really appreciated the idea of TTM and I thought having a trading system and following my trading rules (that was given to me back then) was utmost important. When revising all those lessons, I finally thoroughly understood the importance of following my rules AND to include a TTM rule in my trading system. Since both are important, I had to create rules that leverage on both of these points (again, this reiterates the importance of Tip #2).

Note: Remember that taking the money should be done in a systematic approach and because trading is a probability game, make sure that you only take the profit so that the statistics are in your favour.

Conclusion

Trading is a marathon and not a sprint. Be patient but be sure that you know what you are doing. The 3 tips that I’ve shared today are very simple tips that you can include into your trading routine either on a monthly or quarterly basis. Since they are simple, there are no reasons not to do it. Right?

With that, thank you for reading and hope you’ll start applying those tips this weekend.

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