It is popularly believed among some traders that when you put more time into studying the market, analyzing the chart, and reading several books on trading, you will automatically become a successful trader. As beautiful as all of these activities seem, they will be of no effect if you apply them without the basic foundation of how to learn trading skills.
One of the most difficult situations traders find hard to overcome is the fear of their past loss. If you are a trader and you are scared of putting forth your money into opening your trades because of how you’ve lost in the past, this guide will direct you with simple activities that will help you become better at trading.
Pertaining long hours into studying how trading works will only be effective once you understand the activities in this guide. Most of the successful traders you’ll find today have all gone through similar processes.
For beginners who have little understanding of how trading works, this guide will help you start your career on an informed note while consolidating your plans of becoming the best at what you do. And for those hoping to get themselves back on track after a huge loss, you will find this guy to be of great help in bouncing back.
If you’re also asking the question “how can I improve my trading skills?”Let’s look at some external activities that can help you become a good trader without any further ado.
1. Practice organization and planning-daily
The very first external activity that will be discussed in this guide is organization. You can make well-informed decisions when entering or exiting a trade when you are well organized. This strategy is tested and trusted at any level of trading and will surely bring you the desired results.
You can start by mapping your to-do list for the day and work towards executing them. When you master these habits, you’ll be able to be more effective as a trader. Your trading plan should also include essential tools like technical indicators that help you know where and where you are headed. A handful of trading platforms provide room for strategy testers, allowing you to backtest your trading plan.
2. Be a master of a few assets
Here is where traders get it all wrong. When it comes to trading, you can choose to be a jack of all trades or specialize in a few assets. Most people will go for the former strategy of focusing on several assets; they lose the capital due to frustration of not mastering them.
Instead of trying to know everything, you should work towards understanding how one asset works, then expand your knowledge gradually on a few other assets. If you are a trader that understands crude oil perfectly, then you would be in a more advantaged position than someone who understands more than five currencies, commodities and stocks.
3. Have a mentor
No trader can outgrow the need to have a guardian that points them in the right direction in making the best decision for success. Whether you are new to trading or have some experience, you still need a mentor to help you sharpen your trading skills.
When choosing a mentor, this should be someone who has a track record of successful years of trading. This will not only inspire you to work hard on becoming better at trading, but you will also get relevant experience that will point you in the right direction. For those in search of a reliable mentor. You could find them in schools, webinars, friends’ forums and from the general online community.
4. Puzzles and chess
Puzzles and chess are two perfect brain teasers! Playing puzzles and chess repeatedly has proven to stimulate the brain pathways, leading to mental alertness and effective decision making.
Are you a beginner trader or a pro!? You could cultivate the habit of playing chess or puzzle thrice a week. This will go a long way in helping build your mental strength and clarity, enabling you to make accurate trading decisions.
5. Eat fresh food
Eating right is very important! Many traders make the terrible mistake of eating junk and consuming lots of alcohol. This is not good and could impair your decision. The right diet over time could mar your mental alertness or improve it.
To be an excellent trader, you must eat right and love right. Eat food like fresh fish, oysters, turmeric, and bananas; this goes a long way in stimulating your mental neurons, which are essential for decision making.
6. Exercise regularly
Exercise is very important to the human body. Every human being must exercise at least three times every week. For traders, it’s important to know the exercise activities. Exercising activities like jogging and push ups help circulate blood around the body; this will further stimulate the neurons connected to mental alertness.
So as a trader, instead of carrying out weight lifts that I’ll only build your body shape, engage in neuron-circulative exercises like jogging, pushups, and stretching. These I’ll further improve mental stimulation and alertness, which are essential for accurate decision-making.
Our final verdict
To become a successful trader, you demand that you put in some hard work and intelligence. On your road to increasing your day trading skills, you’ll have to lean on deliberate actions toward the activities highlighted in this guide.
It is easy for you to fall out of the axis of profiting from a tree when you feel to remain deliberate about becoming better at what you do. Having someone that sets you on calls and helps you minimize your lapses is a good way to start as a trader.
As an additional tip, you may consider recording your trading records to help you take inventory of how well you’ve been doing over time. We are sure that this guide will give you the right inspiration to improve your trading skills.