Getting sick of the good ol’ trading tips for beginners?
Here are some unusual (yet very helpful!) pieces of advice I’ve garnered from trading pros:
1. Don’t look at your P/L
That’s right, close that P/L tab on your trading platform or cover that panel up with some masking tape if you have to.
As newbies, it is tempting to focus solely on these bottom line numbers since it’s the main scoreboard that’s nearly impossible to ignore.
However, each and every win or loss might wind up reinforcing trading biases before you’re even aware of them, enough to cloud your decision-making.Instead, as author Mike Bellafiore writes in his book One Good Trade, it makes more sense to “focus on your goal of developing skills first and getting better every day, day after day.”
You’re probably wondering how in the world you’re supposed to gauge your progress if you don’t check your profit/loss figures on your trading account.
Well, if you’ve been keeping a detailed trading journal with these important metrics, then you’d know that there are plenty of other ways to keep track of improvements (or lack thereof) and the adjustments you need to make.
2. Take time off
With the forex market open 24 hours each weekday, you might be worried about missing big trade opportunities if you don’t watch the charts all the time.
And even if you have developed a trading schedule that gives you a pretty decent work-life balance, you might still be feeling guilty about taking some days off if you don’t feel like trading.
The good news is that the market does not run out of good trade setups, and it’s just a matter of being alert and ready to catch those when they happen.
The problem is, there will be those days when you’re just not 100% in the game. You’re likely feeling off when you’re sick, moving to a new house, or reeling from a tough breakup.
What you need to tell yourself is that it’s okay to take time off from trading instead of forcing yourself to keep at it. Athletes suffering from an injury are not forced to play, right?
The market does not care if you’re taking more setups nor does it reward you for putting in more hours. It’s the quality of your trading decisions that makes all the difference.
3. Take only one trade per day
Most newbie traders are prone to overtrading, believing that more setups taken improves their chances of winning.These ain’t lottery tickets y’all!
One of my favorite trading psychologists, Dr. Brett Steenbarger traces overtrading to the mismatch between one’s profit expectations and market volatility.
In other words, traders often feel the need to catch multiple market moves in order to hit their goals.
If you want to maximize your opportunities and skills, you might want to think about being pickier with your trades.
Day trading coach and author Galen Woods suggests the One Bullet Action Plan that sets an absolute one-trade rule which forces you to think like you have just one bullet left. This means that you have to aim properly and pull the trigger at the right time in order to make the most out of your only shot.
While these tips seem counter intuitive at first, you might be surprised to see how these can positively affect your trading mindset and ultimately your profitability.