Spring is notoriously known as a time to clean. While many may be planning to tackle the closet, the garden, or the cupboards, Traders should be applying the same cleaning mindset by taking a look at their own trading processes. Below are three things that I think every trader should do to spring clean.
#1 Clean Up Your Charts
Far too many traders have way too many indicators on their charts. They believe that if they have charts that look complicated, they will somehow be able to decode the best possible entries for trades. In fact, adding indicators in hopes of helping a trader, can actually hinder the ability to make good trading decisions. Too many indicators can clutter your decision making process. Now is the time to consider whether you are actually using all of the indicators that you have on your charts. If you haven’t found them useful or worse, don’t know why they are on your charts, now is the time to remove them. Many traders are usually surprised at how much simpler it can be to trade if you keep your charts clean and straightforward. Now is the time to de-clutter.
#2 Create a trading tracking system
Every trader should be tracking their trades. If you haven’t been tracking them, now is the time to start. Tracking your trades help you establish your progress, and your performance. This is the time of year to look back on your tracking system to determine how your trades are doing, and most importantly if specific trading instruments are making you more money than others. For example, by examining my tracking system I am able to determine which stocks and which futures markets are more profitable for me than others. A tracking system will help you streamline the trading instruments that you are involved in to ensure you are trading most profitably.
#3 Evaluate the success of your trade set ups
There are many trading set ups out there, so many that it can feel overwhelming to know which steps will produce the most profit. At this time of year, examine your trading set ups to ensure that the steps you are following are optimizing your trading potential. Remember, a complicated trading strategy doesn’t necessarily ensure good results. Evaluate the success of each of your trading set ups to maximize your profitability.
So, if you are aiming to clean up this spring, make sure you are including these three cleaning tips to any spring cleaning initiative. Streamlining your charts, your trades, and your trading set ups will help you de-clutter, and keep your trading on the right track.
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Sarah’s new book, How You Can Trade Like A Pro: Breaking into Options, Futures, Stocks and ETF’s is now available in your local bookstore and online. Click here to get a free chapter of her book.
