If you’re taking some time to review your trading goals over the long weekend, here are some helpful reminders to keep in mind.
1. New is not always better.
Before you explore new strategies, take a second look at your old ones and check if a simple adjustment in stop losses, position sizing, or indicator settings would have changed the outcome of your trades.Unlike Barney Stinson, I don’t believe that “new is always better.”
Also, check your journal to see if you consistently executed your strategy–even the best strategies can’t be made profitable with poor execution.
2. Set realistic expectations.
Just because you caught a 200:1 reward-to-risk trade does not mean that you should aim for a 1,000% gain in your account for the rest of the year.
Set your goals and expectations based on your average performance, available time for trading, and capital limitations.
3. Winning can be as dangerous to your account as losing.
Psychologically similar to how losing streaks can make you fearful of taking trades, winners can also cause psychological damage by making you overconfident.
This can lead to lack of preparation and overtrading, which is worse than being too fearful because you are most likely taking on unnecessary risk.
4. Focus on the process, not the profits.
All the points above can be summarized into this one. Forex trading is a marathon, not a sprint.Like any worthy endeavor, becoming consistently profitable requires consistent practice and self-development–don’t kid yourself if you think it requires anything less than that.
Don’t be distracted by one-time profits and losses. Keep your eyes on the prize, and stay focused on doing the right things, the right way, at the right time.