Five trading resolutions for the New Year

Market Analysis /
30 Nov 2018

As 2019 looms large, now could be the perfect time for traders to take stock of the year that’s almost behind us and see if there are some trading behaviours that could be changed to benefit their bottom line. The market can be a fickle beast, but ensuring there’s a degree of structure and discipline in your trading approach may help provide some insulation from market volatility. After all, it seems almost inevitable that the excitable markets we’ve seen return in recent months may well have cause to hang around well into the New Year.

 

  • How often are you trading?

 

Remember that every time you open and close a trade, you’re paying away the bid-offer spread to your broker. This may just seem like a small amount, because on popular pairs like EUR/USD AxiTrader typically charges 1.4 pips to standard traders, with spreads as low as 0.1 pips for those with Pro accounts. Yes you need to close a trade to realise a profit, but are you over-trading? Would you be better off leaving smaller trades open for longer?

 

  • How many instruments are you trading?

 

FX and CFD brokerages give you the flexibility to trade multiple asset classes from a single trading account. That’s a great attribute, but it’s worth keeping in mind that you ought to be across all the fundamental drivers that could impact an asset’s valuation. Even if oil looks like a brilliant buy down at these levels, is there an Opec summit or an independent production update about to be published?

 

  • Are you aware of everything your broker offers?

 

You’re more than likely trading with your current broker because they’re offering you great execution, great pricing and an honest service – they’re certainly three attributes that sit at the heart of the AxiTrader proposition. But what else does your broker offer that can make your trading experience better? The product may have evolved significantly since you signed up – do they offer automated charting packages like Autochartist? Or what about an incubation program for helping those with a real talent for trading to become even better at doing what they love? 

 

  • Keep a trading diary

 

Yes, this is real back to basics, but what about keeping a record of what you’re trading and why. What was the target entry level? Where did you set your exit? Did you achieve this and if not, what went wrong? Understanding what drove those successful trades can be instrumental in helping finesse your approach in the future.

 

  • Commit to reading more and learning something new

 

Whether you’re a fundamental or technical trader, there’s always something new you can learn in the trading environment. Whether it’s the influence of up and coming economic statements you had previously overlooked, or perhaps learning how to build your own EA rather than relying on off-the-shelf components built by others, there’s no shortage of options for self-improvement. Some innovative courses in the market today even provide you with CPD credits on completion or can act as the starting point for receiving professionally recognised accreditation.

 

Hopefully you’ve had a hugely successful year of trading in 2018. Regardless however, the mundane markets which dominated for years certainly seem to have disappeared, at least for now. Volatile conditions require a different mindset so why not make the start of the New Year a reason to review your trading approach?

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