The holiday season is not only about presents, family reunions and warm wishes, it is also the time for reflection and making plans for the future. People like to believe that the New Year will be different: that they will work harder, improve themselves and get better results. However, life often gets on the way and distracts us from the long-term goals we set for the coming year. That is why you should think through your New Year resolutions and make sure they fit into your current routine. This way, they will be easier to implement and sustain, enhancing your performance and creating new opportunities for growth.
So what new traits, skills and habits would you like to acquire in 2024? We have created a list of 6 things you may consider including in your New Year resolutions.
1. Start a Trading Journal
A trading journal is a collection of all relevant information on your deals — the exact time you opened and closed them, market conditions, entry points, price movements, the outcome of each deal, etc. Most professional traders believe a trading journal is a useful tool that can not only make a trader more disciplined, but also acquire important knowledge and test different trading approaches. Revise your trading journal from time to time, especially when the market is flat. It may help you see your progress and analyze past performance.
2. Come Up with Risk Management Rules
Risk management is arguably the most important part of the trading process. Creating risk management rules and following them most of the time may help traders manage potential losses. For example, most professional traders recommend that you allocate no more than 2% of your entire trading capital to a single deal and use stop-loss and take-profit orders.
3. Test More Trading Approaches
Do you already know about scalping, position trading and news trading? Well, 2024 might be a good time to explore new methods. You may consider testing and applying 3 new trading approaches in the coming months to see if they work for you. Keep in mind that it may be wise to test new trading approaches on a demo account before moving on to real funds.
4. Try New Technical Analysis Tools
Don’t limit yourself to one type of indicator, as various tools might provide different information about assets for trading. Learn how to set up and apply in practice at least 5 different technical analysis tools. For example, you may start with the most popular ones, such as the Moving Average, MACD or the Bollinger Bands. You may try adding these indicators to your trading approach to learn how they behave and what kind of information they might offer.
5. Practice Emotional Control
This one may be the hardest of all new year resolutions. However, it might also become the most effective addition to your trading approach. Emotions, no matter positive or negative, have the ability to distract you and make your choices less rational, decreasing your overall trading performance. Who knows, maybe 2024 is the time when you manage to get control over your trading decisions and start making deals based on facts and solid analysis?
6. Appreciate Your Achievements
We often tend to focus on pursuing our goals and forget to take a moment to appreciate what we already accomplished. Think about the time when you were just learning about trading, trying new methods and tools. You have come so far, so just keep exploring the world of trading and stick to your financial plan in order to enhance your trading approach in 2024!
