Get Prepared to Beat Your Previous Trading Achievements

Get Prepared, Beat, Your, Previous, Trading, Achievements, fx trader, forex, Forex TrainingOnce the first of the year is here, it’s on. If there’s anything that the new year does to traders, it makes them excited for beating their previous trading achievements through the next 365 days and how they can make every trade setup count. Along with this excitement comes the opportunity to make mistakes as they act with haste, but there’s a way to avoid this. I urge you to of course, go full speed into the trading positions that will make you a profit this year, but take the time now, before the allure of the new trading year is upon us, to prepare yourself for what’s to come. To do this, there are six questions that you and only you can answer to get your trades in line for 2015.

Question 1: What’s my square one investment?

Everything in your trading starts with your account. There’s just no way around it, but before you pile money into the account and into the market, take time now at the beginning of the year to reevaluate how much you’re trading with. Also, now is the perfect time to consider where that trading account money is coming from before you put it at risk. Why does this matter? Because no matter how you slice it, there is a chance that you will lose some money as you trade next year, so you need to make sure that you’re trading with only disposable income.

For example, take a quick moment to sit with your spouse or whomever to figure out what’s on the agenda for big purchases this year and to separate the needs from the wants. You want to make sure that you can secure funds that can be used for both short-term and long-term trades without having to add money in so that you have what you need to trade for the entire year. Make sure that the money that’s in your account can be tied up all year without getting your family financially tied. The rule of thumb is to never trade with grocery money or your mortgage payment. If you know that your daughter NEEDS a reliable car this year, don’t trade with those funds; they already have a purpose and it’s not to fund your trades.

Now, there’s a flipside to that coin and it’s what I like to call “nice to have monies.” To get personal with you, I want to buy a boat sometime in June or July of 2015. The wife approved it and that’s set in stone in my mind, but that’s still a “nice to have” set of funds and purchase in my mind. That boat money if you will is not a necessity just as the boat is not a necessity. That money can go in the trading account if I want to trade with it for the first six months of the year and if I lose that boat money, I’m losing something I wanted not what I needed. In essence, I’m losing a dream boat, not my family house. I have a little man on the way now and when it comes down to money to keep my home safe and food on the table, that money is completely off limits.

I know what you’re thinking… This is a no-brainer. I can tell you that I completely agree, but give it some time and you’ll start to read through trading forums where this no-brainer became a no-bother for some traders who did away with this concept and put their entire livelihoods at risk. No matter how wealthy or strapped you are, it always pays to consider where your square one investment (your trading account money) is coming from and how this will affect you and your loved ones.

Question 2: Have you secured the right broker?

I personally experienced this situation this year. You have a broker, you have your accounts open and then you get fed up. The customer support is garbage or their audits aren’t satisfying you -- whatever the case, you need to leave your broker. Then, you realize that it’s a two-week process to get your money, change over the account to a new broker that you have to research thoroughly and before you know it, you’ve missed out on hundreds if not thousands of dollars in missed market set ups.