If you did well in the markets in 2021, congrats! Stay focused, stay humble, and keep working hard. If you struggled, don’t beat yourself up! One quality of successful people is their desire to improve themselves. The key is to be honest with yourself, do some post analysis of your trades, and make the proper adjustments to execute better in 2022. Here are a three ways that might help you improve:
1) Stock selection – Most people struggle in the market because they buy “nothing to write home about” stocks. You can increase your probabilities of success if you focus on stocks that have similar characteristics to the big winners throughout history. This includes finding stocks with strong earnings and sales growth and solid technical patterns. It takes time to work on this but focusing on this area can dramatically improve your results.
2) Getting a strong entry point – The feedback I get from many new traders is they struggle with FOMO (fear of missing out). As a result, they see a stock that runs straight up in the air and they chase it at the worst time (i.e. low probability entry point). The key is to avoid FOMO. FOMO is for the weak minded, so don’t be weak. Learn how to properly read charts and focus on getting strong entry points, no matter what your timeframe is a trader.
3) Have a loss cutting policy – The best traders in the world preach defense, defense, defense. Accepting that you are going to be wrong is something many traders struggle with. I’m wrong all the time; I just try not to STAY wrong when a position breaks down and/or goes against me. It’s a difficult concept to grasp, but once you accept that it’s part of the game, it becomes easier to cut a position and move on.
Of course, I could talk about several other ways to improve your trading such as mental toughness, position sizing, etc. I just wanted to suggest a few ideas to focus on in 2022. Thank you to all my followers for all the kind comments and tremendous support this year. I look forward to putting out more content next year. Just remember to focus on gratitude and work on making continued progress in 2022. Thank you and good luck!
I can be reached at: jfahmy@zorcapital.com
Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained on this site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned on this site. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.