What are our top trading resolutions for 2013?
D iscipline
R esults
I ntegrity
V ictory (Over Emotions)
E ducation
Discipline
Most traders could benefit from being more disciplined with their trading. Discipline in trading takes many forms. But it can be summarized as just doing what we know needs to be done.
For example, a common New Year’s resolution is to lose weight. Losing weight is simple in theory—we just need to eat healthy foods and exercise more. Just say no to the doughnut and yes to the salad—simple! Of course, sticking to your plan is anything but easy, which is where discipline comes into play. Just do what we know needs to be done.
If I could target only two things to be more disciplined in next year’s trading they would be:
- Cut losing trades: Do everything to keep losses small.
- Let profits run: Don’t fall prey to the fear of a small profit slipping away. (more…)