HAPPY NEW YEAR! As we begin 2018, here are my Top 8 Trading Tips for 2018 that will keep you on the path to success:
- Self Awareness and Introspection
- Run your own race
- Have a strong why and persevere
- Have a support network
- Be Consistent
- Keep your losses small
- Start a Trading Journal
- Get a Mentor
We must know who we are, where we’re at in our journey’s, what we’re capable of, and what our available time allows us to do. For many of you watching, trading isn’t your full-time thing. Much of the teaching that we read in books from great traders comes to us from a full-time perspective. How do we make that work part-time? How do we make it work for us?
Run your own race
We need to run our own races and compete against ourselves. It’s real easy to look around on social media and find someone boasting about outstanding returns. Their returns don’t matter… YOUR RETURNS DO! Someone can say they made 150% on bitcoin in a week, or have made 400% this year. People can say anything without substantiating it… and by that I’m not even talking about showing you verified returns. If they’re not sharing the nuts and bolts…the details…the dirt and grit that got them there…then their claims aren’t worth your time.
Have a strong why and Persevere
This may come as a shock but trading is hard! If it were easy, everyone would own a few islands somewhere. It’s hard… but its worth it! It’s a skill that once we’ve learned it, will last us the rest of our lives! So how do we persevere…?
We need a strong why. Why are we doing this instead of the million other things we could be doing? A lot of people point toward things like Financial Freedom, or to be able to buy something really big, or help save for the kid’s college fund but there are other ways to achieve those things… Why do we want to achieve them through trading?
It’s important to have a good and powerful why. When the going gets tough (and it will) your why is what is going to help you persevere and keep going! For me, I fell in love with the markets and enjoyed the process. I enjoyed the climb. I had a strong belief not only that people can be successful in the market but that I could. ME!
Have a support network
One of the things I found that helped me learn, focus, stay consistent, and grow faster was having a strong network. I eventually discovered the NYC IBD Meetup group and found a strong supportive group of people who were there to do nothing else other than help each other learn. It was great, especially when times were tough but also when things were good as well. We were able to be open and honest with each other. I later became and still am one of the lead organizers of that group.
You can build a support network virtually as well. I’m trying to do that on Facebook and recently started a new CYT Family group. If you’re on facebook, check it out. But you can even create a group of people you follow on Twitter, StockTwits, Instagram…wherever. Surround yourself with people that will help elevate you.
If you want to be successful at anything you need to put in the work. We are what we consistently do… lets say that again. WE ARE WHAT WE CONSISTENTLY DO! Study, learn, fail, learn, fail some more, learn, continue failing… and eventually you will succeed!
Keep your losses small
You will fail and you will take losses. Every trader does. Our batting average this year was only about .400 We took more losses than we had winners… and this was our BEST YEAR with a +60% return! This doesn’t always happen but the point is that if you keep your losers as small as possible and you allow your winners to run, you can do extremely well!
The best way for you to improve yourself over time is to study yourself… Your wins, your losses, your successes, your mistakes. The best way to study yourself is through consistent journaling. It doesn’t have to be fancy. I started out with a marble notebook and then eventually upgraded to a binder, and then a spreadsheet. If you’d like a copy of the spreadsheet I created, click here and I’ll send it to you.
Get a mentor
This can be tricky. When I started out I had a lot of “aspirational mentors”. All of the books I read, courses I attended, the meetups I joined… These people didn’t know it, some of them passed away a long time ago, but they served as my early mentors. But to speed up the learning curve, to get to the next level, having a person that you can speak to, ask questions, and get feedback from is extremely valuable… these are also challenging to find. You want to be able to relate not only to the mentor’s trading style but also to their personality.
I try to do the aspirational coaching through these videos, and the blog posts, and through social media. Our Advanced Stock Reports members get a version of coaching as well. They get to see what we’re doing with the model portfolio, what we’re planning to trade, why we’re planning to trade it, how we’re managing the trade, and when/why we ultimately exit. They also get to reach out to my partner Adam and I at any time not just for questions about the stuff that we’ve put out there, but about anything they have on their mind and we work through it with them.
Here’s to a great 2018 and beyond! I wish you many great returns! If you have any questions or have a tip 9, 10, or 11 that you feel should have been included, leave it in the comments below. I’d love to hear them and you’ll be helping out a fellow trader who happens to see them as well.