Adapting to changing market conditions is crucial for success as a trader.
Journaling and reviewing past trades can provide valuable insights and improve trading performance.
Deep dives
Alex's journey to becoming a trader during a challenging market
Alex discusses his journey to becoming a trader and reflects on the challenges faced, including the impact of the global pandemic. He shares how he eased back into trading after a car accident and a tumultuous market. Despite his initial bearish mindset, he noticed an abundance of good chart setups and decided to become more active, eventually experiencing a successful trading year in 2020. Alex also contemplates the potential need to adapt his strategy and explore shorting opportunities in the current market.
Adapting to the changing market conditions
Alex discusses the need to adapt to changing market conditions. He shares how he has become more selective and cautious in his trading due to the current choppy and range-bound market. He emphasizes the importance of waiting for the right setups and being patient, even if it means trading less frequently. Alex also comments on the challenges that traders who experienced success in 2020 may face in the current market, and advises them to be prepared for potential shifts and adjustments.
The importance of analyzing trades and adjusting risk management
Alex explains the importance of analyzing trades and adjusting risk management during different market conditions. He highlights the need to review trades and assess whether they align with one's trading system and process. Alex shares his personal experience of tightening up risk management and being more cautious with stop losses in the current market. He also discusses the need to avoid chasing trades and being disciplined to protect capital during challenging market phases.
The benefits of journaling and reflecting on past trading experiences
Alex emphasizes the benefits of journaling and reflecting on past trading experiences. He explains his personal journaling process, where he writes about what he did well and what he could have done better each day. Alex encourages traders to review their journals to identify patterns, strengths, and weaknesses in their trading. He also mentions the usefulness of analyzing screenshots and notes from previous years to gain insights and lessons that can help navigate through challenging market periods.
Today we have a returning guest, Alex, a long-biased trader. Check out our past video where we discuss his story and how he got into trading. 2020 was the best year; however, there was a high level of uncertainty in the market throughout this time. Alex discusses his experiences during this time; along with the highs and lows. The market is very frustrating and can cause numerous paper cuts. Sometimes you have to listen to the market and take a new approach. Experience still requires adaptability in the market and Alex discusses areas where he had to make changes and his current process. It is difficult to find what works; however, learn to look back on your previous setups and figure out how you can move forward. Listen and learn how to turn things around in your trade! Find YOUR edge!
