Most of us know that our trading could be better … if only … x … or y … or z.
But actually making those changes is easier said than done.
So, let’s take a look at some practical steps we can take to make that trading better.
I’m afraid that it doesn’t involve discovering some kryptonite-like new indicator that’s going to give us all the answers.

But the good news is that not one of these steps will cost you a penny.
You really can’t say fairer than that!

1. Unleash your inner geek
Reject white-knuckle trading in favour of slow, steady profits, and (yawn!) a meticulous track record.
Fortunately, Trader’s Bulletin is on hand to do some of the boring stuff for you – in the form of the Trader’s Bulletin Journal – this trading spreadsheet will allow you to keep basic records of your trades and your finances.

2. Learn how to run
It’s one of those glib things that traders say … “let your winners run”.
Great advice, but how are we supposed to know which is a profit is a profit that’ll keep running, and which is one that we should be snatching off the table before the markets turn tail??
Joy of joy – we have the solution in the form of trailing stops!
If you’ve not yet started using trailing stops, I strongly recommend that you take a look at incorporating them into your trading strategy. In volatile markets, they are a great way to take advantage of extra moves, whist keeping your back covered.

That said, if you’re using trailing stops, you should bear what I say about support and resistance levels in mind – trailing stops just do what they say – they trail. They don’t have any kind of intelligent placement in them. Which is why they should be used thoughtfully.

3. Pick your battles
Many of us traders are guilty of over trading. (I know I am.)
And even if you don’t think you’re over trading, chances are you could benefit from filtering out some of your weaker trades.

Take a long hard look at your new immaculately kept trading journal (I told you I’d be coming back to that). Which trades are making you the most money? And which are dragging you down?
How can you effectively filter out some of those duds?
Are there times of day when your trades are better?
Or timeframes that make you more money?
By cutting out your less profitable trades, you can free up time and capital for the more profitable areas of your investments.

4. Know when to walk away
This is the flip-side to letting your profits run: cutting your losses.
If it takes you three years to start making a profit from your trading – then so be it. Sometimes the best things in life require a lot of patience.
But the most important thing of all is to hold on to your capital. Lose your trading fund – and you’re out of the game. And the only way you’re going to stay in the game to control your risk.
Keep your losses small.
Please don’t widen your stops … please don’t add to losers … and please don’t risk more than 2% of your fund.

5. Tackle risk head on
People in general – and traders in particular – tend to have a funny attitude to risk.
Most of us regard ourselves as risk-averse.
Most of us don’t go base-jumping every weekend …
Most of us don’t take our holidays in war zones …
Yet we do very strange things, that we know full-well to be risky … like smoking … drinking … eating pork pies … holding mobile phones to the side of our head …
And when it comes to our finances, we can be even more irrational …
You only have to watch a TV game show to know the bizarre risks people will take when they are faced with the prospect of large sums of money.
And we’re forever hearing about traders who’ve had their entire funds wiped out.
Unfortunately, human beings appear to be rubbish at making risk judgments, which is why we should never “wing it” when it comes to evaluating risk.
Make a risk judgment “on gut instinct” and I’ll wager that you’re seriously overstretching yourself.
Instead, we need to have some sensible guidelines – and stick to them.
The standard advice to traders is to only risk 2% of your fund on any one trade. If you’re not currently doing this – then this would be a good place to start.
You can also cut risk by actively managing your positions – pulling in stop losses once your trade has reached a first profit target … or using trailing stops. This kind of trading plans should be monitored in your trade journal (yes, I’m back on that again!), so you can assess what’s working, and what isn’t.

6. Use your weapons wisely
I see a lot of traders going through technical indicators a bit like I (as a younger, less-wise man) used to go through girlfriends.
Notice something annoying about them … and dump them.
No second chances – I’ve already moved on to new horizons.
It’s a strategy that ultimately gets you nowhere (with relationships and with trading!)
Technical indicators never claim to be infallible – they aren’t crystal balls … they have no god-like powers.
Indicators are there to show us patterns that are building on our charts, that may not be obvious from just looking at the candles. That’s it!
You don’t need to understand every different indicator that it’s possible to add to your charts. Some of the most successful traders I know use a couple of moving averages, and that’s it.

7. Know where you’ll meet support and resistance
You can chuck out every piece of technical analysis, but the one thing you should have marked up on your charts are the horizontal lines of support and resistance.
You can rely on them again and again to give you advance warning of how the markets will behave. Prices (well, traders actually) have long memories, and the markets will repeatedly bump up against the same levels.
These lines really are the closest thing a trader can get to a crystal ball (or a piece of kryptonite).