Anyone that is involved in markets, or anyone that has watched the news for that matter, knows that these last few weeks have caused a lot of pain. It’s times like this when I recommend that retail investors should be in cash, focused on skill sharpening, and shoring up their weaknesses. During the month of September I’ll be releasing a series of posts with tips and tricks for skill sharpening that you can start using right away.
The first part of getting better at something requires that you first recognize it as a shortcoming. There are a few ways to get that done but here are 3 that I suggest:
With virtual trading (a.k.a paper trading), you have a risk free learning opportunity. In my role as a mentor I often stress the virtues of paper trading and I walk my students through strategies that help them identify technical weaknesses and test out strategies that they are still learning.
Once a technical weakness is identified through virtual trading, it’s time to come up with a plan for a fix and test it out with subsequent virtual trades.. I never want someone to put real money at risk while they’re leaning and that sentiment is even stronger right now. With as many pitfalls as we have in this current market environment, it’s unwise to commit to a new strategy or system without thoroughly testing it first..
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