Regardless of how 2018 might have been, the time has come for a fresh start in 2019. The new year will pose challenges for traders in many ways. For instance, the market is still skeptical about how the US-China trade dispute might turn out, while the Brexit outcome is yet to be determined. To tackle such looming uncertainties, traders need to make some resolutions for the New Year in order to stay prepared.
1. Have a Trading Plan
Before entering a trade, it is always a good idea to have a plan on entries and exits. This includes having a stop-loss exit as well as a defined profit goal. Experts say that while finding trading patterns is relatively straightforward, executing them successfully gets difficult in the live markets. So, whether you’re a beginner trader or an expert; it’s always a good idea to practice strategies on a demo account before entering the live markets.
2. Keep Up with Economic News
2019 appears to have a lot in store for us. It is paramount that traders remain aware of important news releases. For instance, President Trump’s quest to reduce US trade deficits with China will have global repercussions. It will not only affect currencies but also the commodities market; particularly soybean. Meanwhile, Brexit will lead to the restructuring of businesses, and financial activities will have to adapt to changing laws.
As such, market volatility might ensue. So, make sure you have an economic calendar to receive timely alerts on headlines and economic indicators. You can also keep a close eye on economic sentiment via social sites such as Twitter.
3. Use Proper Risk-Management Tools
Whatever the reason, losses are inevitable, and it is good to stay prepared. The aim is to minimize their effect on your capital. Consider using stop-loss and take-profit at suitable levels. Some traders also have defined loss limits, which help them stay in the market longer. Never be afraid to go back to the drawing board and re-test your strategies using new risk-management techniques.
4. Continue to Learn New Things
In the New Year, make a plan to learn new strategies and indicators. The market is constantly evolving and so should you. Consider joining a trading community, where traders share their skills and moves. Sign up for lectures, seminars or even online webinars, conducted by financial experts. Read books authored by successful traders, which outline not only market moves but also the psychological aspects of trading.
5. Take Care of Your Health
As a trader, it’s incredibly important to take care of your health. Be sure to take breaks every now and then and get a decent amount of sleep so you can focus properly. Traders have a tendency to develop cardio-vascular ailments due to the pressures that come along with the job, so try to stay relaxed. It’s also a good idea to incorporate an exercise regimen into your daily routine and maintain a healthy weight and diet.
Every trader will have something to improve throughout the New Year. Learning from the past is the right way to move forward in the future.