Happy New Year! For those who aren't too bleary eyed from celebrating I thought I might address the subject of resolutions. Traditionally, many folks make resolutions for the upcoming year at new year's. Some vow to lose weight or stop smoking or perform some relatively noble task for their own or their family's well-being in the days that follow. One area that I suspect might be worthy of such resolutions or at least of some serious thought is the area of trading and investing.
It might be a good time to take inventory of how we have done over the past year. In the article next weekend, for example, when subscribers are at least somewhat recovered from the holidays, I'll let you know how I did in my subscription service trades for $10 Trader, Option Trader, and Trend Trader over the past year. Though past performance does not necessarily reflect future results it does provide some opportunities to see things we have done well and things we may not have done so well. Those observations might lead to improvements in our trading for the next year.
Such an examination of the past may enable us to formulate some positive changes that we can resolve to implement going forward. Some of the areas I have found wanting in retail traders who have not yet achieved success and that can be improved to help their trading are the following:
- They have no trading business planEach of these areas might be the subject of this new year's resolution. At least they might be worthy of some self-examination that could lead to some real improvement.
- If they have a trading plan they fail to follow it
- They fail to cut losses on the old theory that "it'll come back" (when?)
- They do cut profits
- They have no money management plan
- They are unwilling to do what it takes to gain an education or additional education in trading
- They regularly enter positions with no exit strategy
In any event, I would like to thank each of you for subscribing, wish you a wonderful 2011, and great success in your trading and any other endeavors you may undertake in the days that follow. I look forward to the new year with the challenges it brings and the changes that inevitably lie ahead. May they all be for the better!
by Bill Kraft, Editor
Copyright 2010, Makin' Hay, Inc.
All Rights Reserved
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