When the clock strikes midnight, a new year is born as we begin to wish our loved ones a happy new year.
And while we reflect on the past year, what we enjoyed, what we regret, we begin to debate the resolutions that we should make for the year ahead.
Did you know that the long-standing tradition, the act of making resolutions, dates back to the ancient Babylonians? Some 4,000 years ago and yet, however controversial the concept may be, still to this day, millions of people across the globe vow to try and right their wrongs & make at least one hopeful promise to themselves.
According to a statistical report, over 80% of New Year’s resolutions fail only a few months into the year.
Why? Because they’re usually not very practical, manageable, or in some cases, sane!
But, making more realistic and constructive resolutions can actually have a positive impact on you & your year ahead.
Your 2020 Plan
To kick off the new decade, we’ve put together a few resolutions that will significantly help improve your trading strategy, ensuring a more prosperous trading year (and decade).
1- Diversify your trading portfolio
You may have heard of the saying, “Don’t put all your eggs in the same basket” – well, that is what diversification is all about. It is a technique that involves investing in various financial instruments & industries.
So if you’re fed up with making risky trading decisions, be sure to diversify your portfolio to help reduce your trading risk.
2- Create a trading plan that you can stick with
Have you heard of the tongue-twisting saying, “Plan your trade and trade your plan”? Ensuring a well-thought-out strategy will help to outline your trading goals and provide you with a structure to follow.
Trading can be stressful and emotional at the best of times. Traders can react and position trades purely based on emotion over logic, facts & figures.
That’s why following a strict, smart trading plan will make your trading routine easy to follow. You’ll be aware of what to watch out for in the markets, less likely to make impulsive, emotional decisions, which will, therefore, help reduce losses and be more successful in the long term.
3- Keep a trading diary
Keeping a record of what you’re trading can significantly improve your trading strategy. What was your target? Where did you enter and exit the market? Did you achieve your objective and if not, what went wrong? Analysing what drove your successful trades is imperative to improving your trade performance in the long run.
4- Re-evaluate yourself periodically
It’s natural to change over time. You could be in a completely different place from when you first designed your trading plan. So be sure to re-evaluate yourself appropriately and update your strategy at a set time frame.
5- Learn something new every week. Commit to more research
Information is power. Our educational video series offer best-in-class education, analysis, and top tips to help you trade. Enjoy our FREE educational resources here.