Webinar: Becoming a Better Trader – Q&A for Improved Performance
Today, we did a bi-weekly Q&A session. Traders asked a number of great questions pertaining to trading psychology, risk management, analysis & strategy, as well as other important factors to improved trading.
We understand the difficulties which arise in trading, which is why we’ve put together a variety of guides designed to help traders of all experience levels.
- Discussed handling big drawdowns, steps to take
- The concept of focusing on a select few markets/currency pairs
- Other topics pertaining to important facets of trader development
One trader asked about how to get back into trading after having a big drawdown. First off, drawdowns happen to even the best, it’s a natural part of trading. But when you find yourself perhaps in a drawdown that has hit or exceeded a maximum threshold, it’s a good idea to halt trading for a few days or longer. “Get out of the fire.” By doing this you are likely to feel immediate relief and can start objectively analyzing what went wrong during the drawdown. Once you’ve identified the culprit and have a solution, don’t jump right back in and try and make it all back at once. You want to ease back into trading. Reduce your size, get your confidence back by focusing on making good trades. Then once you are ‘feeling it’ again, return back to your normal trading size.
Another trader asked about whether they should focus on specific markets/currency pairs or scan the whole market. I believe it’s a good idea to limit the number of markets and/or currency pairs on your radar, as not all of them have the same characteristics, or move the same. ‘Getting to know’ your markets will create more confidence when it comes time to act. You also won’t be overwhelmed by looking at too many ‘flashing lights’. This will help prevent you from over-trading, a problem all-too-common and easy to fall prey to.
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For the full conversation, please see the video above…
Related links to this webinar: Creating a Trading Plan; Handling Drawdowns; Risk Management; Analysis, keeping it simple; 6 Mistakes Traders Make; Focusing on the Process; Building Consistency; Classic Chart Patterns, Part I;Classic Chart Patterns, Part I;Classic Chart Patterns, Part II
---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.