I trust you had a fun and profitable November and regardless of the result you have made progress in your learning.
December has always been one of my favorite months of the year, for many reasons. Summer, sunshine, and celebrations make this month a scrumptious month to cherish.
The Xmas buzz makes people happy and fun to be around, I personally love bright lights and fireworks, so when I see them almost every night in Sydney, they remind me of great times with my parents. As the year ends, it brings fresh hope and exciting goals for a new year, and the realisation that there is still time to make progress with the previous years’ goals, such as appreciating family and friends, the contribution that we can make to others less fortunate than us, gratitude for being in one of the most beautiful and peaceful places on the planet, tasty food all around, and even the celebration of life itself… and my list goes on!
So how does this emotional uplift promise to make a profitable month for some in trading and how can you utilize strategies to get into the black in December? Everyone deserves to score a nice trading month to celebrate. Let’s see what we can learn from the month of celebrations and apply it to trading! Here are a few simple strategies that are easy to implement to get the results you desire.
- Be ready for good things coming to you:
This is the first and foremost expectation you will develop this month. As you receive gifts on Xmas day, you also expect your account to be at an X profit level this month. I personally don’t listen to people who say that the market is slow in December. This month will bring some nice moves to profit from and a positive expectation on your part will bring the results.
- Pack a gift: In this gift box wrap for yourself a cheque (or you can write out a gift for yourself) that you will get as a result of success this month. Anticipate a positive move. An important part of packing this gift is planning. Add that precision to your trading and ‘plan’ diligently eg: Number of trades required to reach your goal, set hours you will trade, when will you stop trading, how will you keep track of your trades and analysis day after day, and what will you do if you have a huge win in the first week (will you stop?), what will you do if you have a draw down (will you keep going?). If you wrap your Trading plan with such precision, you will find a beautiful gift at Xmas time under the tree.
- Sharing & Contribution: One of the most beautiful aspects of this season is the spirit that most of us like to contribute. Here is how I suggest you contribute. Be the best trader of the month in your own right by following your plan. No need to focus on money, in my opinion, focus on improving your game. Increase your strike rate, enrich your market knowledge, take your execution a notch up. Once you tick some simple boxes congratulate yourself and contribute by being fun, happy and the best you can be this month. This step is most rewarding because there is a ripple effect of our inner feelings on people surrounding us. Therefore rather than stopping completely this month because you anticipate being busy, get busy executing your trading plan only for 1 hour per day and reap the rewards at the end of the month.
- Review: Another great aspect of December for me is reflection! When we reflect upon ourselves and review the year, there is something humbling that happens as a result. This year, for me, it is the realisation that I am not perfect and still have a long way to go, and this gets me excited to refocus and get on with things. Another highlight of this realisation is that everyone is human and doing their best in any given situation, and it feels good to forgive. I forgive my shortcomings of the past year and get ready to ‘START ‘ This is such a great feeling whether you had a fantastic trading year or not, you will just ‘Start Again’ fresh!
- Gratitude: Research now clearly shows the power of gratitude. This way of gratitude is not just for the things we have but for everything and everyone around us and how they help us bring the tapestry of life together. I suggest considering gratitude for all the losses in trading and review the lessons learned. Also, it is a good idea to appreciate how far you have come in your journey. For a new trader, it is important to understand that even the best traders have a negative year now and then, but they know that it is just a phase, after a thorough review they are ready for a highly profitable New Year. I know you are!
To your prosperity
Psychology of Trading Specialist