When I first started trading 17 years ago, I didn’t know a fraction of what I know today.
There was no StocksToTrade or IRIS and I didn’t immediately discover Tim Sykes’ Trading Challenge (the course that would eventually change my trading career forever).
In the beginning, I was young, impressionable, and naive…
I didn’t have a coherent strategy. I joined sketchy trading chat rooms run by “gurus” with no proven track record. And I paid the price with brutal losses.
If this sounds familiar, it’s time to pay attention…
I would pay a pretty penny to get in a time machine and re-trade my early years in the market.
Of course, that’s impossible for me. It’s too late to go back and start over on day one.
But depending on where you are in your trading journey, it might not be too late for you to start in the right place:
Take the first step towards becoming a successful intraday trader and join us in the Daily Income Trader System today.
So, today, I’d like to share with you the first four tips I wish I knew when I first started trading…
(I’ll share the next four on Tuesday…)
Set Clear Goals
One of the first steps to improving your trading performance is to set clear and specific goals.
Identify what you want to accomplish as a trader.
For example, maybe you want to make an extra $500 per month.
Then, break down your goals into smaller, manageable tasks, and create a timeline to track your progress.
Using our $500 example, think of it like this…
There are 20 trading days per month, so you would only need to profit $25 per day to accomplish this goal.
If you make a bunch of small trades and develop a consistent strategy, you’ll gain invaluable experience in the market while building a disciplined mindset.
Make $500 several months in a row, and then you might be ready to scale up your position sizes.
And if you’re wondering how to pick stocks to trade…
Before you know it, you could be in the big leagues, trading huge sums like one of the best penny stock traders I know — Jack Kellogg.
Look, every trader wants to become a multi-millionaire — but few have the foresight to lay out a realistic timeline for accomplishing it.
By having a clear direction, you can stay focused, organized, and geared toward your ultimate goals.
Manage Your Time Wisely
Trading is largely about effective time management.
After all, the market’s only open from 6:30 a.m. to 4 p.m. EST each weekday…
There are only so many hours in the day to chart, trade, and evaluate your setups.
This is even more important to consider if you’re a part-time trader, or if you’re busy with kids at home a lot of the time (like I am).
Start by analyzing your daily tasks and prioritizing them based on importance and urgency.
For example, if you currently have an open position … you must deal with that before scanning the market for new opportunities.
Create a daily trading routine that works for you and stick to it. I think the best place to start your trading day is in Pre-Market Prep.
Develop New Skills
Continuous learning is essential for professional growth and improved performance in the stock market.
Warren Buffett’s partner of 60 years, the late great Charlie Munger said, “Those who keep learning will keep rising in life. If you keep learning all the time you have a huge advantage. You don’t have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time.”
Munger died six months ago at the age of 99 with a net worth of $2.6 billion, while Buffett is currently the eighth-richest person in the world with a net worth of $137.5 billion…
So, yeah, I think they’re worth listening to on this subject.
Start learning like these guys. Identify areas where you can enhance your skills and knowledge, both in the markets and beyond.
But don’t think you have to do it all on your own…
We talk about how to maximize your intraday trading strategies every morning in Pre-Market Prep.
Be open to learning new trading techniques and you may be amazed at the outcome.
Get Feedback
Constructive feedback is priceless for personal and professional development as a trader.
Sometimes, it’s hard to be objective about your own trading. You can easily get wrapped up in emotions that cloud your unbiased viewpoint.
If you’re not careful, psychological hurdles like hindsight bias and confirmation bias can ruin your overall mindset.
This is why, when you’re struggling, you should actively seek feedback from your trading peers and colleagues.
A friend may point out one aspect of the setup you didn’t notice that completely changes your view of the trade…
Like this incredible trade idea my buddy Matt Monaco showed me recently.
Consider embracing the idea of team trading — and joining us in Daily Income Traders — to get in on a community of active traders with amazing knowledge, ideas, and execution.
Trading might be an individual sport, but you don’t have to do it all on your own.
I wish I had these resources (and this knowledge) when I first started trading.
But you do. So, take advantage of the opportunities in front of you … or regret it forever.
We’ll continue with Part II of my tips on Tuesday.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade