It’s the most wonderful time of the year – for many things, but also for reflection. However, traders are often so accustomed to the need for speed that often they don’t take the time to sit back and reflect.
Instead, traders should be taking advantage of the festivities and quieter markets to think about their trading year and consider how they feel about trading. In particular, looking back at our trades, activities, and decisions can help us confront our mistakes and focus on our personal growth as traders.
Traders have a tendency to ignore all the bad and focus only on the wins and happier moments. This is called ‘emotional avoidance’, and it happens because it often hurts to think about what went wrong and why we lost.
But frankly, you need to not do that. Taking the time to reflect on your experiences and emotions, both positive and negative, enhances faster growth.
Let’s see how 2022 can make way for a better version of 2021, your trading and you.
“Year’s end is neither an end nor a beginning, but a going on.”
As Hal Borland, American author, journalist and naturalist, once said: “Year’s end is neither an end nor a beginning but a going on, with all the wisdom that experience can instil in us.”
So, after reflecting on the trading year, you’d better design the ‘going on’. Below, you might find some inspo about how you can change or enhance your trading routine, considering your experience until now.
Find some time to reflect on your trading every single day:
Journaling is a great way to reflect, build positive behaviours to avoid repeating past mistakes, make better future decisions, and increase self-awareness.
Recording your everyday trading routine can help you think about the areas you need to improve in. But you can also track the areas in which you are outstanding. Focusing on good aspects too is very much needed and can be great for your motivation. So, cheers to both losses and successes!
Set goals rather than resolutions:
Targeting is an integral part of everyday life, whether that’s to do with micro or macro goals. Every day, we make decisions based on goals we have already set, whether by design or unconsciously. But if you decide to set trading goals, your goals must be both achievable and measurable. They must also be realistic. Last but not least, you’d better focus on your goals and not only on the results.
Slow down and ask questions:
Your trading plan must be based on what you can control. Make your decisions based on what is happening, not what you think or want to happen. This means you need to ask questions, provide answers, and reevaluate from time to time. Don’t hesitate to ask for an expert’s opinion or that of a more experienced trader!
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