How To trade Smart
Learn the methods.
1st March 2022 • 5 min read
With the invention of the internet, there is a diverse amount of information out there for anyone to read. However, there is very little credible information out there on how to trade smart.
To become a Smart and Consistent trader, you’d need to put in a lot of work and time into mastering your craft. Notice how I did not mention “perfecting your craft”, that is mainly because there will always be refinements to be made.
No said strategy is perfect or the secret to becoming a successful trader. Many beginner traders search for the “secret sauce” as its called now but the unfortunate reality is, there is none. Understanding there is no secret sauce will help many traders actually focus on their strategy and mastering it by making refinements to it. That is where real & consistent traders are born.
Another major issue is that once you have learnt a strategy or method, you become emotionally attached to it even if it may not work well. This is another issue many traders face in their journey. Understanding & being true to yourself is important, by doing so that brings you to a place of comfort where trading becomes second nature.
When trading becomes second nature, people then start to become complacent which is basic human nature. How do we avoid that complacency then? The answer is to trade Smart, because that complacency can come to good use if you are being smart & practical about your trades.
These are various methods i believe will help a Trader, trade smart & not trade “dumb”.
Self Awareness
You will first need to be self aware about your emotions, the market & whether you are following your plan to the T. By becoming self aware, you are able to firstly control your emotions, secondly understand the market for what it truly is & not what you think.
How do I become Self Aware?
The simple fact of matter is, to become self aware is to be honest with yourself. For example, if you took a trade that lost, ask yourself what went wrong, did you take the trade without following your rules? If so why did you do so?
Becoming honest with yourself is to understand why you do what you do & acting upon what you have found by reflecting upon it.
Pre Trading Routine
Introducing a Pre Trading Routine is important, many of you may have heard the classic meditation, cold showers and etc before. However, i truly believe in meditation. You do not need to sit and follow a meditation video on youtube but instead sit in complete silence and relax your mind and body.
A Pre-Trading Routine I Follow Myself:
1. Simple 5 Minute Meditation
2. Coffee
3. Read my Trading Plan
4. Market Outlook
5. Wait for my Trading Hours
Journaling Your Trades
It is insanely important to journal your trades, by doing so you will be able to narrow down what works & what doesn’t. This will give you an edge because you understand what patterns, what trading hours, what Stop sizes & even Take Profit targets work consistently. This allows you to tweak your Trading Plan to create an even more profitable strategy with a Higher win rate than before.
Summary
To summarize, there are numerous ways to work towards becoming a Smart Trader that may work for you. I highly encourage each and every one of you to work towards becoming a smart trader. As we all know a smart worker would overpower a hard worker any day. Trade smart everyone!
