As we move into the summer trading months, market action often slows down. I use this time to improve as a trader, and I figured I’d share my tips to improve trading performance.
My tips to improve trading performance
Write it down!
I’m a huge advocate of feedback and the BEST one of all is a journal. Some people feel they don’t have the time to do it, but taking 5-10 minutes a day to recap what went right and what went wrong is an incredible feedback loop.
Review wins and losses
As Albert Einstein famously said, “Insanity is doing the same thing over and over again and expecting different results.” A great life lesson!
I like to pull out my journal and review and reflect on both my wins and losses so I can do more of what’s working and less of what’s not. Perhaps a new option swing trading technique I tried didn’t perform for me. Perhaps someone in our chat room always comes up with great ideas – so I better pay more attention to that person!
Experiment with different indicators
As a technician, I like to use a combination of charting styles, momentum indicators, price/volume plots, and sentiment to understand the markets and find winning trades.
However, even my favorites, like the MACD, parabolic SAR, money flow and moving averages, do not always give me the answers I am looking for. So, I like to experiment with different indicators, blend them together to see if they will give me quicker and better answers to my question: “Is this stock/index worth a buy or sell?”
Learn from other experts
I love learning from other trading and investing experts. I’ll read up on different techniques from other technicians, whether it’s their book or blog. I’ve found that even a bit of reading each day can improve my methodology and give me the edge I need to be an even better trader.
Trade on paper
Paper trading is the best way to practice without risking capital. If you are trying an options strangle for the first time (buy a call, buy a put) why not paper trade it once or twice and simply follow the result? When you do place the trade, you’ll have much less stress.
Be intentional about learning
Finally, I try to pick something new each day to improve my trading ability. If one thing each day seems like a lot to you, maybe pick one thing each week. In either case, this will help you be much more intentional about learning and improving as at trader.
This is just my list, so I’d love to hear from you: What are your tips to improve option swing trading performance?
