Trading in any market is no easy game. If anything, it’s like driving, the better you are at it, the easier you’ll reach your destination– and safely at that. With this in mind, as a trader, you must constantly be striving to make the most out of your trades.
However, you’ve been noticing lately your progress growing to be slightly more sluggish, and not making as much as you think you should. Here are three early warning signs to remind you to step your game up before it gets worse.
You’re not setting realistic profit targets
Every trader works on the idea of making as much profit as possible from short-term trades. However, when you set yourself to unrealistic goals, you’re only setting yourself up for disappointment and that disappointment can be expensive.
Usually, it is ideal to set smaller profit targets because smaller yet consistent profit is much more favorable than bigger albeit riskier rewards. This is also relative to the amount of time traders hold on to positions because trading, whether you like it or not, is about the fast-life that requires a lot of care within, often times, a matter of seconds or minutes. If you expect extremely high profits and choose to mindlessly hold on to a trade for the sake of reaching said profits, you might just end up at a massive loss.
You’re not adapting to circumstances
The past year of financial turmoil in almost every market has taught us that we really have to constantly be on our feet when it comes to our money. This was especially true to traders all around the world, who through a baptism of fire, learned to roll with the punches to survive the worst of crashes. This is what separated the best from the rest, and what kept them from losing more than they should. How exactly did they adapt?
By understanding the severity of the situation and projecting realistic goals. This means setting lower than usual profit targets and carefully selecting trades as precariousness can lead to massive losses. This also means rehashing strategies because what worked before may not necessarily work in the current situation so it’s important to always be alert.
Adaptability isn’t exclusive to market crashes though, for it is for essence in regular markets as well. You must be able to adjust and be flexible to make the most out of your trades, and to make sure that you’re maintaining your financial safety.
You keep missing out on great opportunities
Opportunities come by the dozen in the market everyday. This is another principle that traders live by– to make the most out of the smallest of opportunities on a daily basis.
When you feel like you’re not catching a whiff of these opportunities as often as you should, you might end up finding yourself in a trading stasis. So keep your eyes sharp, read the news, keep updated on any talks in the market, and spend more time monitoring indicators on stocks than usual. By doing this, you’ll find yourself in a higher abundance of possible positions.
As a trader, you must constantly be at the top of your game because your money depends on it. It is never good to be too complacent with your skills, so always be on the lookout for these warning signs and step up your game.