- I reveal my 4 New Year’s trading resolutions for 2022!
- The errors I made in 2021 and how I’ll eliminate them in 2022…
- Plus, DON’T miss this once-in-a-lifetime offer from Tim Sykes!
As a trader, you should always be looking for ways to improve, refine, and enhance your strategies. After all, that’s exactly why I named my teaching service Evolved Trader.
2022 is only two days away, making this the perfect time to plan for the year ahead. And if the early indications are at all accurate, next year could be a truly historic one in the stock market.
With that in mind, it’s time to reveal my 2022 new year’s trading resolutions. Let’s get right into it…
Resolution #1: Trade Less
At some point, every trader is guilty of the crime of overtrading. It’s unavoidable.
If you find yourself in this category, don’t panic. Instead, zero in on that blunder — then do everything you can to improve upon it.
In that spirit, my first trading resolution is to trade less.
When looking back on my biggest fails from the past year, I noticed that several of the plays were examples of overtrading.
The setups weren’t ideal, I mistimed my entries, and I even allowed FOMO to creep into my trading mindset during a few plays.
But let’s be honest. Sometimes, it’s extremely difficult to find solid trade ideas. During certain periods, I’ll scour the market for days on end — with little or no setups to show for it.
It’s during these unfortunate weeks when I find myself tempted to trade patterns I should leave alone.
If you aren’t careful, you could find yourself chasing a play just because other traders are talking about it. (More on that later.)
To combat this costly mistake, I’m committing to trading differently in 2022. I’ll constantly remind myself that overtrading is a mistake.
Trade less = trade better.
Resolution #2: Wait Patiently for Ideal Setups
Going hand-in-hand with trading less, my second resolution is to wait patiently for ideal setups.
I may sound like a broken record with this particular piece of advice, but it’s for a good reason…
If I had a penny for every time a little bit of patience could have turned a trade around for me, I’d be even richer than I already am.
As a younger trader with no discipline, I’d often enter trades without an excellent setup. I’m WAY more disciplined these days. But like any trader, I still occasionally make unnecessary mistakes.
And I often find that I could have avoided these errors had I simply been more patient (and discerning) with my setups.
So join me in this resolution — in 2022, we won’t let FOMO (or lack of discipline) get the best of us.
Instead, we’ll sit on the sidelines until the setup we’ve been waiting for clearly emerges from the rubble.
Patience is a virtue for any trader — but it’s also a muscle you must exercise.
Practice honing the discipline to wait for ideal setups and perfect chart patterns.
Resolution #3: Don’t Chase
First of all, what is chasing?
To me, if a stock has three or four green days in a row (without consolidation) and you enter a long trade, that’s chasing.
As a trader, chasing a volatile stock is extremely risky, especially after it’s already moved significantly in a particular direction.
The bottom line: when you chase a hyped-up trade, the odds are stacked against you.
The best of the price action has already come and gone — you’re late to the party.
Remember, getting a bad entry can ruin any chance of making a profit. Worse, it can lead to a loss!
You don’t have to be Warren Buffett to see that chasing trades is something you should try to avoid.
So, how exactly can Evolvers work to steer clear of chasing?
Here are three specific steps you can take to help avoid being a chaser:
- Always use limit orders, NEVER market orders. When traders get overexuberant, they mash the “market order” button. They let the importance of cost basis move to the back of their minds. DO NOT make this mistake. Instead, always send limit orders. Pick the price at which you’re willing to enter the trade and stick to it.
- Wait for consolidation. If you get alerted to a play that’s too far along in its pattern for you to jump in — add the ticker to your watchlist. Then, be disciplined in waiting for consolidation.
- Do your homework. Every social media play isn’t created equally. I don’t want to give you the impression that you should avoid all of them. Say you get an alert — then use it to conduct your own research. That’s very different from blindly chasing a play. Do the former, not the latter.
Resolution #4: Identify and Eliminate Recurring Mistakes
Why do I take the time every year to lay out my New Year’s trading resolutions?
The answer lies in my fourth and final promise to myself for 2022 — to identify (and eliminate) recurring mistakes in my trading.
If I had to pick one trait that separates the incredible traders I know (like Tim Sykes) from the 95% of trades that lose — it would be their ability to accurately identify the mistakes they make.
As a trader, you need to be hard on yourself in this way. Don’t beat yourself up, but be ruthless in pointing out what you’re doing wrong. That’s step one.
Step two? Eliminate those errors from your trading.
This is easier said than done, but it’s crucial if you want to become a stock market mastermind.
If you’re honest with yourself about identifying the aspects of your trading that need improvement, then you can determine trading resolutions of your own.
After all, every trader is unique. While I think my resolutions can apply to many Evolvers, you may have completely different things to work on than I do.
Over the next few days, take time to focus and write out your 2022 trading resolutions.
Then we can check in — in 2023 — to see if we stuck to our personal trading promises.
As this is the last issue of 2021, I’d like to take this opportunity to thank each and every one of you for spending this incredible year with me.
Whether you’re a day-one Evolver or a new student, it’s truly my pleasure to be able to share my trading knowledge with you.
Don’t party too hard on New Year’s Eve — and I’ll see you in 2022!