What Michael Jordan, Tiger Woods and Justin Bieber have in common? They all excel in their respective fields and are always looking for ways to improve their skills. They are exposed to different environments to try different things to see what works best for them. In other words, to accept the change.
Michael Jordan changed the game based on pure athleticism, explosives have a sweet, weak shot to gain points. Tiger Woods has changed his golf swing several times to remain an elite player. Even Justin Bieber, who began his career as an interpolation of high pitch, is starting to adjust your singing style to accommodate the changing voice.
These elite performers owe much of their success to embrace change, and this is what we, as merchants, should strive to do.
The problem faced by many traders is not really in making needed changes, but not to proceed. This is what separates the “greats” of the “not so great.”
Great move on with your changes and never stop, but is not-so-large tend to be lazy and feel loose over time, eventually falling back into old habits. As a result, big improvement, and not so great do not grow.
Of course, embracing change is not easy. And even if a merchant were to step outside their comfort zone to try new methods and techniques that may not have the perseverance to move forward if things are rocky.
A mistake that traders that the first time that the application of changes to your trading style is to focus immediately on the results of change. More specifically, focus on operating profits and losses (what do we say about that, huh ?).
A trader may initially see the changes have brought benefits. Naturally, the trader feels that the system is cost effective and immediately starts trading live at their usual levels of risk. The problem with this is that the trader is not fully aware of all the effects that changes implemented can have on their global trading system and risk management plans. This problem is due to the lack of experience – both in understanding the new system parameters and how to deal with changes in the system.
Many traders try new methods, but lack the strength and discipline to practice and get the information needed to effectively evaluate whether the results are significant or not. They stop halfway, especially because they feel it is not worth the time, effort, and / or pain to really see if changes can be profitable.
In the end, if a trader is burned, both mentally and economically test a new trading system or a bargaining tool, which can be very traumatic. You can even make the trader to refrain from exposure to changes, thus stunting their growth as a trader.
A good way to implement change is to create a controlled environment where you can freely make mistakes. By doing this, you can accelerate your learning curve, without the risk of permanent damage to your finances.
Two ways to do this is by reviewing charts and trading a demo account.
1.) Reviews Graphic
In reviewing charts do not have the feeling of trading real time since you are seeing everything in retrospect, it helps you figure out what could be done during the day. The next time a similar provision appears, you know what to do. It’s a bit like watching a repeat of his basketball game. You can see all the things you did right and wrong and adjust accordingly. This is a practice that the FX-Men, as Pip and Cyclopip happy, I really enjoy doing.
2.) Demo Trading
Demo trading is helpful because it allows you to participate in the market in real time without risking your capital. You can take many configurations as you wish, allowing you to accumulate weeks’-worth of commercial experience in a single day. You can test a trading system or focus their attention repeatedly in news reports of specific trade.
In doing these two exercises, you put yourself in a controlled environment, taking a training camp where you can practice continuously, train and put your skills to the test without the pressure of losing real money winning. Hopefully this will help you move on and accept change completely, allowing you to grow as a trader.