Everyone always wants to make more money, but most of the time they’re looking in the wrong places…
New traders seem to be the worst for it! Constantly looking for something new that will charge their account, but the answers right in-front of you!
Here’s a few ways to increase your bankroll without having to start over…
The first and most obvious port of call for traders is to increase the frequency they place trades, in order to create more money. In all honesty, I’m not a fan of this way of thinking.
It stands to reason as in all other walks of life we’re taught to ‘do more’.
Example: Want more money? work more…
While it makes sense in one respect; more winning trades = more money. It’s not usually how it works as you define your own style of trading.
Over-trading is often a problem for manual traders. However, once you know you’re strengths, weaknesses, ideal situations and can remain disciplined it’s time to look at upping the amount of trades you place.
We’ve all heard it on a forum or in a book somewhere;
“let profits run, and close out losses sooner”
While it’s a very simple concept, the complete opposite often happens. Emotions tend to force us into making bad decisions through fear. Teaching yourself not to act on fear, be aware and keep to your method will allow you to actually let them profitable trades run, but it takes time (some manage it quicker than others).
The temptation to close out a trade sooner rather than later is often great for several reasons;
- Money – It’s why we’re here, right? As I’ve said before; if you’re not then progress is likely to be smoother but lets keep it real. Naturally we’re here for the payout!
- Validation – Nobody likes to be wrong. By closing out the trade while it’s ahead you instinctively feel like a winner, which is great. But we’re not here to massage our ego, closing out too early isn’t efficient. Managing the risk is key but wasting potential profit isn’t, just bear it in mind.
- Missed Opportunity – There’s only one thing that hurts more than being wrong; being right, doing nothing about it then losing. Feeling like you missed out is worse than being incorrect for many… but if you don’t hold on those winning swings you can’t expect the profits. It’s tough but by being aware of these kind of feelings is the first step to over-coming them.
In my experience the problem of not maximizing your winning margin centres around how I’ve felt while trading. Once on-top of how I felt with a winning trade open it allowed me to maximize margins!
Here’s a quick YouTube clip I created about Self-Awareness a few years ago when I realised how important it was.
I’ve saved the best till last…
Reducing is the amount of losses you have is the fastest way to boost your balance I know. I literally want to shout that last sentence! If it’s one thing you remember from this post, make sure that’s it. It’s the best trading tip I can give you.
While everyone is obsessed with profiting and how much they can make on any one trade they often lose sight of how many mistakes they made. All those ‘maybe trades’… I’m telling you right now, knock the maybe-trades on the head. The ones where you think something could happen, but don’t feel all that confident.
The best thing about increasing your efficiency when it comes to making mistakes is you are fully in control, it’s something you can see and correct instantly. Unlike understanding why that runner just went from 4.0 to 6.0 in 20 seconds… You can cut the stupid mistakes in a heartbeat, but like the awareness above, you’ll need to be honest with yourself rather than blaming mistakes on something external (it’s okay, we all do it at times).
Reducing the amount of mistakes you make is a sure-fire way to have more.
If you don’t already, I’d advise recording some of your trading activity. It’s all too easy to get caught up in the moment and lose sight of what happened. You can get a 30 day free-trial for most software’s if you give them a Google. Camtasia is probably the most user-friendly I have seen.
If you’ve seen the YouTube Channel you’ll already know the benefits of screen-recording.
Related: Video Pack Recordings
I was driving along in my car the other day, wondering why I made that stupid mistake of going in play ( I’m outer here! That damn Bart!), and I wondered if I could trade like I drive, as I thought, I dont make mistakes when I drive, what did I do? I took the wrong turning! But I did manage to make my self aware of the mistake and corrected it immediatley (why didnt I get out when Bart told me too?) and if I didnt go inplay I would still made a profit for the day. Yes I was daydreaming whilst driving but it was because I was thinking of trading. Solution: Don’t think about Trading when your driving!
Relating this to your blog above, self awareness, being aware in the moment, is very important when trading, and you can cut out the mistakes by just being aware and even though you take a different route to where your going you get there in the end.
I like that Graham totally honest thoughts especially self awareness as your last sentence highlights.
Great response Graham, being an ex London cabbie you do make a wrong turn but quickly get out of it. My main problem is obviously going inplay and allowing a 4 go to 6 and before I know it 20s & stake is gone! Gonna try this screen recording to go over where going wrong.