HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
XM information and reviews
XM
82%

Six New Year Resolutions for Traders in 2023


The year 2022 is coming to an end, and the time has come for a fresh start in 2023. The end of the year is a great time for traders to review their 2022 trading performance and reflect on how they’ve fared in the market. To take advantage of the ‘clean slate’ that comes with the new year, here are 6 new year resolutions traders can consider in 2023. 

Enforce a trading plan 

Traders may draft a trading plan according to their needs and characteristics. A trading plan is an outline that is properly researched and documented by traders to help guide them in their trading decisions. Such trading plan should outline how traders identify an asset they want to trade, the purpose of the trade, and even the entry and exit point.  

Each trading plan is unique and is built in a way that suits the trader’s trading objective. As the trading plan is built on the trader’s trading goals, traders must be disciplined and stick to the trading plan. A trading plan helps to ensure that the trader knows his steps to take, stays objective with his decisions, and would be less affected by psychological changes or market movements.  

The trading plan can include setting a suitable entry price, exit price and stop loss for each trade, even before executing the first move. This helps traders to avoid getting swept up by their emotions when the active trade faces price movement, as they already have a target price in mind for all scenarios. Sticking to the trading plan will also help eliminate traders from second-guessing their trading decisions. 

Set a stop-loss for each trade 

Even the most well-planned trade can result in losses. Hence, knowing when to cut those losses is a critical part of becoming a successful trader. Traders can often hold on to losing positions in hope that the price will bounce back, but sometimes, these losses could grow bigger, especially if the asset continues to fall. For example, when a trader buys a stock at $100 and sells it off at $90, this represents a 10% loss. The trader would need to trade a stock for an 11.1% gain with the remaining $90 to get back his breakeven capital of $100. However, if he held on to his position and sold the stock at $80 instead, this represents a 20% loss, requiring a 25% gain using the remaining $80 in order to break even. 

This shows the increased difficulty to break even from a greater loss. Consider using the stop-loss function when trading to avoid this scenario and set a price target you are willing to take the loss at. This can be a percentage decrease, or a specific price that you determine.   

Diversify Your Trading Portfolio 

Try diversifying your trading portfolio. Having more positions in the market, across different asset classes, can help to potentially reduce the risk your trading portfolio faces. To diversify your trading portfolio, you may trade several different markets, and also utilise different investment products. Traders can diversify their portfolio among products like CFDs on stocks, bonds, commodities, funds, real estate and cash; or you can even diversify your portfolio within an asset class, such as selecting different types of stocks including large-cap stocks, growth stocks, blue chip stocks and defensive stocks. How a trader diversifies their portfolio is entirely up to their risk appetite and trading goals. 

Employ Risk Management Strategies 

As a trader, improving risk management strategies can be beneficial as it helps traders minimise their exposure when trading. There are various ways a trader can manage their risk, such as not overleveraging their trades. While leverage has the potential to help traders increase earnings, it can also increase potential losses. Using higher leverage on your capital means taking on higher risk, and hence, traders should look to leverage only what they can stomach. 

Traders can also use trading tools such as stop-loss or setting a daily loss limit (DLL) to help in their risk management strategies. These tools are great in helping traders to minimise their loss when trading. It’s important for traders to determine their DLL as every trader have a different risk appetite.  

Improve on Technical Analysis Skills 

Make a plan to learn new technical analysis skills, trading strategies and indicators. Traders should constantly strive to improve themselves as the market conditions are ever-changing. Traders can join a trading community where traders share their indicators, moves, and skills. These discussions on how each trader executes their trades or what signals they are looking for will further improve your trading knowledge. 

Traders can also enrol in educational courses to improve their technical analysis skills. There are many things that traders can still learn from and improve on, even if they have been trading for a long time. These courses will help you better analyse the charts, use the right indicators, and potentially improve your trading success rate. A better understanding of technical indicators will also help traders plan their trades more confidently. 

Here are some of the key technical skills that a trader could learn more about:  

Make it a point to keep up with the news 

As a trader, keeping up with the latest market news can help traders to manage their trades better. It is important to understand how market news will shift the market, and whether market volatility will come along with that news.  For example, in 2022, the Federal Reserve has raised interest rates multiple times throughout the years, and the stock market always moves accordingly to these announcements [1].  

This is because the higher interest rates will make it more expensive for financial institutions to borrow money. This has a downstream effect where financial institutions also charge companies higher interest rates for loans. Companies would then cut back on their borrowing to further expand their businesses, potentially lowering expectations for growth, therefore lowering the price of the company’s stock.  

Traders can use broker apps and platforms to help get all the latest economic headlines and indicators to ensure they keep up with the news. Having an economic calendar readily available can also come in handy. Traders can also tap on social media platforms to stay up to date with the latest happenings. Traders can also follow Vantage on Instagram or TikTok to get all the latest market updates. 

Conclusion

Listed above are just some new year resolutions that traders may consider  following in order to improve themselves and their trading crafts further. To help with some of the trading resolutions, such as improving traders’ technical analysis skills, traders can open a free demo account with Vantage. It allows traders to practise their technical analysis and try out different trading strategies and techniques without risking their own capital. In addition, the demo account will allow traders to get a chance to test out trading different CFDs products such as forex, commodities, stocks and ETFs. 

#source


RELATED

A brief history of Forex

When you think of forex today, you likely conjure up an image of a flat-screen digital device full of real-time figures, fluctuating graphs, notifications...

Is Forex essentially gambling?

An issue for many new market entrants is the following: Is Forex essentially gambling? Each decision we make in our daily lives can be considered as a risk we take to succeed or progress in something...

What is Litecoin?

Litecoin is a form of peer-to-peer cryptocurrency (digital money). It was created after Bitcoin, making it the second oldest cryptocurrency. Litecoin was founded by Charlie Lee...

The Comprehensive Guide to Copy Trading

Copy trading, an innovative and adaptive strategy in the trading realm, offers participants the opportunity to emulate the trades of often more seasoned traders, all in real-time...

Volatility: What It Is and Why You Should Know About It

Everyone who has ever dealt with trading has come across such a thing as volatility. It is easy to guess that this concept is important, since it is talked about, discussed in textbooks and various articles...

Is Demo Trading Really Worth It?

There is an unfavorable outlook on demo trading merely for the fact that you can’t generate profit with virtual money. A lot of traders essentially...

Trade Silver Online: A Complete Guide for Beginners

To start with, what is silver trading? Traders have highly valued silver for many years now. The metal has various usages including jewellery or as a form of currency....

What Is a Limit Order?

A limit order is an order that has a prespecified price to buy or sell a security. For example, if a trader is looking to purchase stock with a limit of $10.50, they will only buy the stock...

Why Trade Precious Metals

Precious metals are a popular way to diversify a trader’s portfolio. They also act as a hedge against currency inflation or economic instability. Examples of the three most popular traded precious metals are gold...

A brief article on Investing in Silver CFDs

Gold and Silver are precious metals that has been known to man since the olden days. Investing in Silver and Gold also dates back to prehistoric times...

How to Trade the Fed Rate Decision - Guide for 2022

The Fed funds rate is one of the most important benchmarks for investors and traders all over the world. Its adjustment significantly affects exchange rates and the economic situation of countries...

The Art of Money Management

Beginner traders usually consider money management to be some dull paperwork; outwitting and conquering the market for a short-term profit seems much...

Biggest Mistakes to Avoid as a Beginner Trader

One of the things learned on the trading floor is that the most crucial part of the success formula is to accept a loss. It’s how traders gain an additional profit and an edge against others...

Bollinger Bands: Unveiling Volatility and Price Reversals

Bollinger Bands consist of three key components: a middle line, an upper band, and a lower band. The middle line is usually a Simple Moving Average (SMA) or Exponential Moving Average (EMA)

A Comprehensive Guide On How To Trade USD/CAD Currency Pair

The USD/CAD currency pair represents the relationship between the US dollar and the Canadian dollar and is a favored choice among currency traders due to its active trading hours...

Can Brokers Really Manipulate Market Prices?

The trading realm is rife with tales of broker manipulations causing devastating losses. With a plethora of platforms available, how can traders discern between genuine...

Beginner's Guide to Share CFDs Trading

Prospective traders can't run out of trading options due to the avalanche of investment opportunities in the trading market. In addition to trading Forex and cryptocurrency...

How to Stop Exiting Trades too Early

One of the biggest struggles traders face daily is the temptation to exit trades too early. There are numerous reasons one might opt to close a trade too early, ranging...

Is CFD trading a better option in 2022/23?

It wasn’t so long ago that only the elite and wealthy had access to the global markets. Back then, a traditional trading account would require a deposit of at least...

Everything you Need to Know about Precious Metals

There has been consistent growth for all the most popular metals this year, with the demand for gold and other precious metals spiralling. Due to a significant trend...

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.