Improve your trading in 5 simple steps

Even the most experienced traders can sometimes find themselves with poor financial performance. Occasional losses are inevitable, but if the losing streak extends beyond measure, it's natural to think. When traders find themselves in this situation, it's often because they're stuck in a rut and don't know what to do to improve. If this sounds like you, the first step is to determine the reasons why you may be underperforming, and the next step is to learn how to fix the problem. If you don't know how to do it, this article explains what you can do to improve.


1. Start small


It's only after you've found a reliable demo balance strategy that you gradually find yourself in real trading, starting with smaller investments. Working with smaller amounts would allow you to trade away from the pressure of excessive risk and open up the possibility of reviving your trading performance.

2. Focus on practice


One of the reasons you are underperforming might be because you don't have enough time to implement your demo balance strategy. Maybe it's because you know it's not "the real thing," but the practice is just as important as real trading. It will show you the aspects of your strategy you need to spend more time refining, and getting good results will give you a confidence boost. Treat the practice as seriously as it treats the real trades, giving yourself enough time to confirm your strategy.

3. Try different strategies


If you are underperforming in trading, one possible reason could be that you have not found the right trading strategy for you. We are all different, and each of us has our way of operating that provides the best results. Perhaps you have not yet found your most effective trading strategy. If you have relied on technical indicators on their own, for example, you could add important news to your analysis to have an additional basis for your decisions. To help you find the best trading strategy, check out our article on the most common trading strategies you should know.

4. Try different periods


Many traders are quick to invest their money as soon as the trade turns favorable on the demo balance. However, even the weakest strategies can sometimes seem adequate, often thanks to favorable market conditions and without any merit in themselves. You should know the strengths and weaknesses of your trading strategy, and you may consider validating its accuracy using historical data. Scroll to the side to go back in time and check your trading signals in the past to confirm your strategy.

5. Stay positive


Faced with more than affordable losses, it is human to react, feeling frustrated. When you experience frequent losses instead of gains, you may start to feel depressed or defeated and want to give up. The first step on the road to improvement is to deny this negativity. You must be positive about the situation if you want the opportunity to improve it. Acknowledge that your comments are not what you are talking about, but take positive steps to make improvements.

To understand which tips work best for you, try implementing all of them (preferably in a demo account first) and see what suits your personal preferences and trading style.