How To Develop a Trading Style
If you want to separate yourself from the many traders who fail and set yourself up for long term success, like my top Millionairestudents and I, you must take the time to develop your own trading style.
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What exactly do I mean by a trading style?
Basically, I’m referring to traders who have really taken the time to develop, hone and refine their personal trading based on their own strengths, weaknesses and comfort levels, so that they can make trades with confidence
As a new trader, how can you hope to develop a trading style that works for you? Here are some tips.
1. Develop basic stock trading skills. Have you ever heard the phrase “learn the rules before you break them”? It’s an appropriate adage to live by as a trader. Before you can branch off on your own and develop a trading style, you need to learn and master the basics, start with this free stock guide. Even a creative genius like Picasso had to learn how to mix paint and use a paint brush before he could eventually learn to create masterpieces.
As a potential trader, this means that you have to devote yourself to learning the basics and mechanics of trading. I offer plenty of free guidance on my site, including my e-guide to how to trade penny stocks. This is an invaluable resource for anyone who is thinking about delving into trading, as it gives you many of the raw materials you need to find success later on.
2. Get a mentor / teacher. Absorbing the basic knowledge is part one of your trading education. To really bring the basics home and learn how to use them, it’s necessary for you to find a mentor and teacher.
I established the Tim Sykes Millionaire Challenge so that I could act as that necessary mentor to my students, taking them past mastering the basics to actually learning how to use them. I guide my students into the world of being a trader, teaching them how to apply their knowledge. Basically, the program is like the gateway between raw information and actually finding success in trading and ALL of my Millionaire students have come from this intense program, so only go apply for my if you’re serious and dedicated.
3. Let go of expectations. Maybe you came into trading with specific expectations about how it would be. Maybe you had an image of yourself waking up at 11 every day and working in your pajamas or maybe you figured you’d become a great trader quickly.
It’s important to let go of expectations when you start trading — remember that 90%+ of traders lose so if you don’t take this seriously, you will likely become another statistic. And when you have improper expectations, you can become quite rigid in what you expect from your results, too and you’ll likely get frustrated early on as even my top Millionairestudent took 9 months just to get consistent!
So get ready to have patience to give yourself room to really learn, explore, and try out different styles of trading. Don’t get me wrong, you should most definitely have short-term goals too, but don’t come into trading with unrealistic expectations…allow yourself the space and time to discover what works best for you over time!
4. Keep note of what works (and what doesn’t). If you really want to develop a trading style that reliably makes you money, really keep note of what is working and what is not. This doesn’t have to be a complicated thing. You can keep a notebook or document in which you take notes at the end of each day. If you had a big success or breakthrough, make note of what steps you took to get there. This can allow you to repeat them and hopefully replicate your success.
Also keep note of what is not working. If you start to notice a trend of something you’re doing that is reliably making you lose money, then have the wherewithal to quit it. Keeping notes can help you keep on refining and developing as style that works for you.
5. Try all sorts of different trading methods. Remember what I said about the necessity of letting go of expectations? Forget what you think you should do as a trader. Try everything, and begin to learn what really works for you.
Of course, I say this with a caveat. There are certain things, like mitigating risk by doing research, that every trader ought to do. But at the same time, you shouldn’t become so caught up in your process that you don’t see other opportunities. Learn about all sorts of different techniques and approaches to trading. If a method intrigues you, give it a try and see for yourself. While I’m not so much of a fan of throwing everything at the wall and seeing what sticks, a certain amount of experimentation can improve your trading.
6. Look at what’s working for others. To build on the last point, one way to find different methods of trading is to look at what works for others.
Simply copying what others are doing is not going to bring you success, because you can never fully replicate every intuitive step that a trader takes. However, other traders’ successes can inform and give you ideas. So look at what traders are doing; many members of the Tim Sykes Millionaire Challenge Team are very open about their processes and post specifics. In looking at what works for others, you can develop your own steps toward success.
See examples from some of my hottest students right now:
7. Keep refining your methods. Wash, rinse, repeat. All of the things listed so far aren’t just things that you should do once and then forget. Continue running through these steps as you continue your work as a trader. At any point, even when you become established as a trader, you can go back and benefit from many of the steps already listed. By always keeping an open mind, being open to learning, and having the ability to improve and refine your methods, you’ll gradually develop a trading style that will continue to evolve with you over what will hopefully be a long career span.
8. Allow yourself to grow over time. In case you didn’t already grasp this, to develop a trading style, you need time. Few people are skilled at something right when they begin. Similarly with trading, it takes time to strengthen your muscles and really develop skills that stick. Be generous with yourself and give it time. Slow but steady will make you a stronger trader without a doubt. Stick with it…read this key blog post about patience to understand what I mean even better!
Developing a trading style takes time, but with continued effort, it will happen. Discovering a style that works for you is a matter of trial and error, plenty of hard work, and lots of dedication. If you’re up to the challenge, continued trading will help you develop just that.
Leave a comment below and tell me which of these bullet points resonates the most with you? I’m curious and be honest as to become truly successful you have to be honest about EVERYTHING!