Trading Strategies – Minor Adjustments & Increased Profitability

A Love-Hate Relationship
The life of a trader can sometimes be a little turbulent. This is primarily due to the fact that financial markets are themselves quite tempestuous, otherwise known as volatility. When you are in sync with the market and things are going well, trading is an absolute pleasure. However, get caught on the wrong side of the market and you will soon discover how debilitating it can also be at times.
As a result, many tend to form a love-hate relationship with trading. For many, this relationship tends to swing more on the side of hate than love. However, a couple of good trades can do wonders, especially if a trader has been on a bit of a losing streak. Trading is like any other skill, it has to be learned. This is often overlooked, and yet, plays an enormous role in the ongoing development and success of any trader.
Learning and developing skills, especially in regard to technical analysis is where every new trader needs to begin their journey. Technical analysis is at the heart of effective trading. Regardless of whether you desire to become a breakout trader, an Elliot Wave enthusiast, or a short seller, technical analysis plays an integral part in the execution of successful trades. Outside of TA, trading becomes more of a gamble.
A new trader who is unwilling to dedicate time to education will most likely fall away over time. Essentially, the right attitude paves the way to continued adjustments, which ultimately lead to greater levels of profitability. This is absolutely essential, in terms of improving and developing as a trader. Experience, together with knowledge often works in unison to highlight minor modifications that can result in increased profitability.
Starting Out Right
Ironically, starting out correctly is inherently tied to efficiency and profitability. Without the dedication to incorporate a study routine, where will a new trader now find the dedication for improvement? If you are unwilling to set foot into a gym or begin exercising, it’s somewhat impossible to improve your physique. It’s a logical progression, or lack thereof, to be more accurate.
I have found that over time, my understanding has increased, and subsequently, my ability to continue fine-tuning my existing strategies. No matter how effective a strategy becomes, I have learned from experience that it can always be improved upon. If the efficiency of your trading activities continues to experience minor improvements, eventually your success rate and profitability experience exponential growth.
I currently have a particular trading strategy that is a pleasure to practice. Essentially, the addition of ongoing minor adjustments is effectively reducing risk, while simultaneously providing a constant level of success. This is an aspect I always aim for. Consistent gains are way more effective over time. A significant win, followed by a significant loss puts you right back at square one.
Once again, the law of averages plays a pivotal role in this dynamic. Choosing to allow an additional 1% in terms of a stop-loss could boost your profitable trades significantly. Stop-loss hunting always manages to catch the majority of stop-loss orders. If you set your stop-loss in a zone that everyone else is using, then chances are, you are going to get triggered. Studying past performance will aid in identifying a sweet spot.

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Final Thoughts
There are countless “minor” adjustments that can be made, even to a winning strategy. Ongoing enhancement and improvement, over time, will, produce pleasing results. For me, it’s important to keep fine-tuning and further enhancing already profitable trading strategies. It’s always important to remember that trading is a journey, and one that rewards the diligent and determined. See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.