Finding Out What’s Letting Down Your Trading – And When It’s Time To Change Strategy

Before you even download your first trading app or set foot in a physical exchange, know this: trading is complex, unpredictable, and sometimes stressful. However, it can also be extremely lucrative! Managing your portfolio successfully is all about giving yourself the time to research and develop. Portfolio management is a long-term earner – not something that you can ever make quick money from. 

Therefore, there may come a time when you need to start looking at different ways to trade. While one trading strategy may serve you well for the first few years, things are likely to change. That’s why it’s a good idea to compare brokers and read industry guides (such as this Admiral Markets broker review). It’s also why having resources such as WeCompareBrokers and financial planners on side is so crucial early on. 

Here are a few trigger points and red flags you should always keep in mind – and when it might be time to rethink the way you trade. 

You’re in it to make money – quickly 

Ask any seasoned trader what the number one ‘don’t do’ is, and they will likely tell you that it’s chasing the big wins. If you’re trading only for return after return, you are going to burn out very quickly. 

This can be difficult to balance. After all, if you make a big sale, passively or otherwise, you may feel the buzz to continue – which is great – but it could lead you down a dark path towards disappointment. 

That’s why it’s important to diversify and to keep your options open for the long haul. You’re not going to convert on every single decision – and that’s natural. It’s time to be realistic. 

You’re driven by emotion 

Emotional trading, believe it or not, is a very real phenomenon. It’s the act of buying and selling based on a whole variety of factors. Again, you might have made a big sale, and feel that luck is on your side. You might even buy or sell out of anger, frustration or blind positivity – crucially, you need to take emotion out of the equation altogether. 

This can be very difficult, even for seasoned traders. It is why there are so many apps and programs available now that offer robo-advisors. Robo-advisors analyze your attitude to risk and effectively make stock decisions on your behalf. You can tweak this at any time, but you’re never letting humanity get in the way of a good deal.

You’re sold to one idea 

Finding a trading strategy that works well for you isn’t a bad thing. If anything, if you have one clear way to make money from your portfolio and it’s more than breaking even, why would you change it? However, for many people, committing to one single plan, idea or strategy just isn’t sustainable in the long term. 

That’s because circumstances can change over a lifetime. You’ll likely find that your personal needs and goals will evolve hugely over a short period, meaning that the trading system that worked for you in 2018 likely won’t sustain you in 2028. 

Therefore, it’s a prudent option to consider different strategies and ways to manage your stocks and shares. Otherwise, following one system blindly could lead you into a tight corner that’s difficult to wiggle out from. 

You follow the populace 

A safe option is to follow what other people are doing in the marketplace – particularly seasoned traders. This is hardly an irresponsible option. In fact, if you’re just getting started, it may be recommended. That said, a restricted attitude to risk is unlikely to serve you well for the years to come. 

All trading arrives with risk to some degree. Trading purely based on what the most popular options and movements are is unlikely to bring you big wins or passive income you can depend on. With that in mind, it is certainly a good idea to look into different ways to manage your money as time rolls by. 

Crucially, what you must always remember is that there are always going to be different ways to transform your trading experience. Why do you think that there are so many books written about investment? It is not a cut-and-dried exercise, and as such, you must make sure to keep your options open. Don’t ever be afraid to reach out for help, and always keep an open mind when it comes to your existing strategy – no matter what your growth plans may be.