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A Trader’s New Years Resolutions

Author: Price Headley (info)
Website: http://bigtrends.com
Posted: December 28th, 2006 at 5:20 am EST
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With the new year just days away, what better time to mentally prepare yourself for better trading? Here are twelve key ideas, if you’re having trouble coming up with specific ones of your own. While they can all be implemented as of January 1st, 2007, notice there are twelve of them. Why not apply all twelve at the very beginning of the year, and also spend a month of intense focus on each one as well?

The important part for you as a trader is to set self-management rules that you are committed to, and that are acheivable. All twelve of these fit the bill, but don’t underestimate the challange that each will bring. (note: I write these in the present tense, to ingrain them into my current behavior, not some future behavior).

1. I do not trade every day just because I feel as if I have to.

2. I develop a proven trading system, and realize that one bad trade does not negate the system.

3. I set profit targets, and will take those profits when they are achieved. I will not change targets in an effort to create “just a little more” profit.

4. I do not let emotions sway my trade decisions.

5. I approach trading as a business. I am strategic and logical.

6. I learn something every day, no matter how small, that gives me a greater trading edge.

7. I keep a trading journal, and note when and why my analysis failed and succeeded. I review this journal weekly and monthly.

8. I do not fight the market. I capitalize on whichever direction the market is going.

9. I take small losses rather than let them become large losses. I don’t have to be correct with every trade.

10. I am an expert in one area of trading, whether it be options, one certain stock, or an index. I master every detail particular to those trades.

11. I invest in my success, whether it is a book, market data, or a trading coach.

12. I act upon what the market is doing, rather than what I think it “should” be doing.

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