Lots of new traders coming into the markets this month…
And some of those already here are trying new things.
It’s just that time of year isn’t it?
We all want to get the New Year off to a flying start so who can blame people for turning to trading, or to new trading strategies, in order to hit their financial goals.
One thing concerns me though…well two things actually…
1) New traders coming to the markets with their unrealistic expectations.
You’ve heard me rant on about this one before, I’m sure.
So I’m not going to bore you with tales of the unscrupulous system-peddlers and how they lead new traders astray into some kind of fantasy-realm where all the moneeez comes fast and easy.
(We will be revisiting this pet-peeve of mine another time though, so brace yourself!)
No, want I want to tell you about today is this:
2) Traders already starting to get good results that suddenly jump-ship.
You can probably picture the scene…
The trader is making money. Small money, granted. But even at this stage they are already head and neck ahead of many traders.
So when traders talk of abandoning their successful strategy in search of something better I do everything I can to get them to act in their own best interests.
I’m tipping my hat to Bijal here. I had this exact conversation with her last week. Here’s what she asked:
“I love [Strategy A] as I am in control and I know what I am doing. My question is should I also join your [Strategy B] and what does it contain – i.e. do you email trades or do I have to work it out my self etc.
Should I leave [Strategy A] and join [Strategy B] or do both?”
So here are my thoughts on this common trap:
If you have found your trading ‘groove’ with [Strategy A] I’d stick with it through thick and thin.
Seriously, I cannot emphasise how important it is to have personal confidence in what you are doing.
You can buy the most promising new system on earth but if you personally don’t understand why it works, or if you don’t have confidence in your ability to spot the signals or whatever, your trading discipline will almost certainly suffer.
(This is what has traders hopping from system to system looking for the ‘Holy Grail’ and never really finding success with anything.)
Finding a strategy that fits you well is one of the biggest hurdles you’ll face. Many traders try to ‘force-fit’ systems that could never really work for them because of their daytime commitments etc. They get put-off trading and never actually find something that works for them.
So don’t undo the work you’ve already put into [Strategy A]!
The markets will still be here in 3 months time, 6 months’ time, a year’s time, so get Strategy A humming along and generating regular profits and then get started on Strategy B.
But do it when the time is right for you.
Have one main point of focus at a time – make sure you can run Strategy A in your sleep before dedicating time and resources to Strategy B.
This is how to build and develop impregnable trading discipline that’ll serve your own best interests.
And if you do find yourself in a position where you’re considering giving up a profit generating strategy, what is it that’s driving those feelings: the promise of more profits, an easier trading process, less time at the screen, what?
Drop me a line and tell me, I’d love to know more about what’s on your mind with this:
Until next time…