By Jerry Furst - Investors Education Network
The Root of the word “Resolutions” is “Resolve”
I was asked by the staff of FX Street to come up with three New Years Trading Resolutions and so here are mine specifically - you can see all the other FX Street contributors resolutions using the link at the bottom.
Having been involved with a trading floor with over 80 traders with various levels of experience for the past 9 months has been quite an experience. The reality is always different from the dream of the imagination. Below are some suggestions from the most common issues I see in my students and that I experince myself!
Resolutions or Goals – What’s the Difference?
Resolutions are like promises and commitments and I do not make promises I do not intend to keep nor do I take on commitments lightly. When I commit to something it’s going to take something really strong to derail me from keeping my commitment. Psychologically once a promise is broken it is too easy to dismiss the entire effort and derail some very good efforts and intentions. So I like the term of “goals” better and so I hereby commit to three trading related goals - not resolutions - for 2010.
- Documenting and Recording all trades in a Trading Log.
Printing out my charts, with notations on initial reasons on why and where to enter and exit a trade, stop losses and multiple profit targets. By writing my thoughts on the chart - before the trade completes - will allow me to review what happened – right or wrong.
- No Impulsive Trades or Overtrading.
Resolution #1 should help resolve this pesky problem of getting excited about a trade that has not been well planned or does not have a clear entry. Over trading is another issue I deal with. Sometimes, after several winning trades, a false sense of confidence and euphoria can ruin a good trading day.
- Take a Break and Celebrate after Achieving Goals!
Having clearly defined goals for the week, month, quarter, and year written down is part of a traders business plan. This includes having a money management strategy that takes money off the table for rewards, replenishment, and paying the bills. Have a goal to reward myself with something tangible once goals are achieved.
But perhaps the true resolution of 2010 should be to make the promise and commitment to myself – for myself – seriously – very seriously to achieve my goals. Best to you all in 2010 and beyond in all your endeavors in good health and wealth – with whatever you commit to.
Healthy, Happy and Prosperous New Years to All and Good Trading !
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Jerry Furst is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients. [More about Jerry]
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