The internet is filled with resources for traders, including articles, videos, and other mediums where experienced traders can share information and tips that will help you. However, a lot of this information seems to focus on what you’re doing wrong as a trader. For example, the entire field of trading psychology seems to focus on negative emotions and the ways that they play against you. You’ll also find articles that talk about bad trading habits, weaknesses, and other mistakes you might be making as a trader. All of this is important, but you might be left wondering what you’re actually doing right if you only look at resources that tell you what you’re doing wrong.
If you’re trying to identify your trading strengths, you can start by taking a look at your trading journal. Hopefully, you’ve already been keeping detailed notes about each trade you’ve taken in your journal to help make this step easier. If you haven’t, you should start keeping a log right now. This won’t only help you with identifying your trading strengths, but it can also help point out weaknesses and help you identify other issues you might miss otherwise. From there, try identifying your 10 most profitable trades and look for common factors among them. Did you trade the same pairs, stick to your trading plan, or enter the trades based on a certain type of evidence? If you can identify things those trades have in common, you’ll have an idea of what you’re doing right.
Another tip is to try to identify your strengths as a trader. This can seem hard at first, especially since you have to apply the adjectives to yourself, so we’ll provide a few examples:
- Persistence
- Self-control/discipline
- Creativity
- Open-mindedness
- Interested in learning
- Wisdom
- Curiosity
- Humor
Basically, you need to think of the positive traits you have and then figure out a way to apply them to trading. For example, if you have an easy time laughing even when things are tough, you could use your humorous personality to help yourself get over any trading losses, rather than feeling depressed over them. You probably already apply some of your positive qualities to your trades, but it can help if you’re more aware of these qualities so that they can be used most effectively.
Finally, you can try asking other people for their opinions on the way you trade. This could be a close friend, family member, or colleague with trading experience, or you could turn to the internet to get help from other traders online. Sometimes, others might be able to see things you can’t see about yourself and you’ll be able to get opinions that aren’t biased. Ask your friends what they see as your trading strengths and then compare the results to what you originally pinpointed to see if they match or differ. You might just learn something about yourself!
As a trader, it’s important to identify your weaknesses so that you can figure out healthy ways to address them. At the same time, you need to know what your strengths are so that they can be used to your advantage. Try keeping a trading journal, identifying your personal strengths and comparing those results with other’s opinions, and figuring out ways to use your identified strengths when you’re trading to get the best results possible.