The new year is just weeks away. 2021 yet again felt like it absolutely flew by in everyone’s minds. With the markets breaking all-time highs week after week, volatility increasing, and the uncertainty of the continuation of the pandemic, 2021 has treated day traders well.
Now, it is time to set our sights towards 2022. In a recent blog we talked about the best way to review and audit your 2021 results, but today we are shifting our focus to the top 10 goals you should set for yourself no matter what level you are at in your career to be successful this coming calendar year.
Study 1 Hour A Day
If you have ever talked to a pro trader, you know that even though they are at the top, they are STILL a student of the game. They still learn every day and seek out knowledge from others who do this profession successfully. Make 2022 the year of focused education and growth for yourself. Don’t get content. Especially as a new trader, following this progression below will help you stay on the right path. Don’t rush things, especially if you are kicking off your career this year. You have time!
No Revenge Trading
Revenge trading happens out of pure anger and frustration. If you feel yourself getting frustrated at all due to a loss the day before or on the same day, take the rest of the day off and clear your head. Revenge Trading never ends well, and you have to learn how to curb those emotions immediately. Develop the self-recognition of when emotions begin to cloud your judgment.
No FOMO Trading
FOMO ended so many traders’ careers this year. Even experienced traders struggle with this. FOMO trading is consistent with chasing. Many traders will see a stock start to move and they will chase an entry (throwing off their risk-reward profile) because they don’t want to miss out on the potential move.
If you feel yourself catching some FOMO or wanting to chase a trade, walk away from the screens. It is that simple. Go make some coffee, and avoid the situation entirely. Building a thorough watch list plays a big part in preventing FOMO trading. Learn how to build a day trading watch list in this video here:
Keep a Consistent Journal
If you don’t know what you’re doing wrong and right, it is hard to make adjustments and improvements to your game. Make sure this year to keep a tight journal on EVERY trade you make. Don’t slack. Keep the stats, and review them every week. Find holes in your game and fix them. Learn more about how to keep a trading journal in this blog here.
Focus On The Charts NOT Your P&L
Naturally, trading is associated with money. You want to focus on all the cash and your p&l on every trade. But, for this entire year, focus on creating the habit of watching and playing the CHART in front of you, not your p&l which can drastically affect your emotions.
Surround Yourself With the Best
Successful traders turn this profession from a lonely game into a ‘team’ game. They surround themselves with a community like the one we have created, bounce ideas off of each other, share trades, chat, and create little ‘trading buddies’. Start off the new year by joining a community and really opening up. Stop keeping your losses to yourself. Find someone you click with and can grow all year together with.
Create and Stick To A Daily Routine
Routines allow you to really get in the rhythm every day and help aid in your success by creating a consistent atmosphere that promotes productivity every day. Create a consistent and strong routine around your current schedule or ‘dream schedule’ for the new year that helps keep you organized and productive around the optimal trading times of the day. Check out our sample routine below for some help!
Aim For Singles
Don’t swing for the fences every day. Set small profit goals at the start, and scale up your account steadily. If you try to reach that end-of-year goal too quickly, screw your risk-reward profile up (and that’s what we dive into next), size up too big, and cause unnecessarily large losses. Take it day by day and be happy with singles. They add up fast.
Focus On Risk Reward
We say it time and time again, but you live and die by your risk-reward discipline. All year you should NOT take a trade that has less than 2:1 odds in your favor. Stick to it on all setups and you’ll be on the right track from the start. Trading is a game of percentages, risk management, and probabilities. Just check this chart out below and make sure every trade you take is sticking in the green regions based on risk and percentages.
Keep Yourself In Check All Year
Be honest with yourself. Make a list of these goals, and review them every week. Find out which ones you are sticking to and which ones you are slacking on. This year can and WILL really be huge for you if you stick to your goals, and don’t try to rush things. You have 365 days to improve, don’t try to get there in one jump!
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