Kathleen Brooks' New Year Resolutions
|- Stop trying to make the market fit my strategy
This can be a disconcerting experience, but my number one lesson for 2014 is to remember not to try and make the market fit my strategy, and start to make my strategy fit the prevailing market conditions. For example, trying to implement a break out strategy when the market is in consolidation mode. You see the price break above your noted resistance level; you put on your trade only for price to turn back around causing you to lose money. A breakout strategy does not work in consolidating markets. Instead, you need to think about what the market is doing first, and if it is moving sideways consider something else, for example a range trading strategy. Having a repertoire of ways to trade the market rather than one favourite strategy that you try to use in all conditions is a more sophisticated (and hopefully successful) way to trade.
- Stay disciplined
- Join the community
Becoming more actively involved in trading blogs, communities twitter etc., is my final resolution of 2014. I tend to dip in and out of them rather than engage with any consistency. This means that I am potentially missing out on a wealth of information and trade ideas. Trading can be a solitary business, but the community can make you feel part of something and not so alone when your trade goes wrong or the going gets tough.
Kathleen Brooks is Research Director at FOREX.com. She has extensive knowledge of the financial markets after working as a trading analyst on the foreign exchange trading floor at BP's London office. While she was there, Kathleen covered foreign exchange, fixed income and equity markets and also co-managed a trading book for its analytics trading desk. [More about Kathleen Brooks]
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.