Most trading resources tend to focus on what to do before and during a trade in order to become a profitable trader. Here’s the thing: what you do after a trade is just as important, if not more. For one, it’s the perfect time to review your performance and think about what can be improved. Secondly, while it may not seem obvious, it can impact how well you do on your next trade.
We’ve put together a list of three simple yet effective things you can do after a trade to keep your skills sharp and your mind even sharper:
Trading is about constantly honing your skills, and one the ways to do that is by learning from your experiences.That’s why it’s a good idea to keep a record of your trades, successful or not. After you close a trade, take a moment to jot down a few notes about what happened. Did the trade go as planned? If not, where did things take a turn? How did you feel during the trade? Maybe a flash of inspiration hit you for a strategy you want to try later on. Rather than rely on memory, commit your ideas to paper. Having said that, debriefing doesn’t mean dwelling on the trade — just take a few seconds to write down key impressions.
That’s right: step away from the screen! Trading is mentally draining, even physically exhausting at times. As a trader, you shouldn’t neglect the importance of rest. Set aside time to do something other than trading. In fact, try doing an activity that doesn’t involve staring at a phone or computer. Forget that the market exists. Removing yourself from the world of trading for a few hours will allow you to clear your mind and replenish your energy, enabling you to stay on top of your trading game.
Now that you’ve relaxed, it’s time to get motivated! Remember why you started trading and what you hope to get out of it. If you have a trading journal, flip through it. Glance back at your goals. Reflect on how far you’ve come. Think of all that you can still accomplish. Having a winning mindset and positive attitude can be a real game-changer!
If you already do any of these three post-trade activities, it’s a great start. If not, you might want to incorporate them into your trading routine. Though simple, you may see these habits pay off in the long run.Trade now
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future
GENERAL RISK WARNING
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
76% of retail investor accounts lose money when trading CFDs.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.