It's this time of year where everyone is looking forward to the new year, new goals, and new money! As we look forward to the year as well, let's talk about 3 ways you can make this your most profitable year ever.
The first thing we can focus on is to give yourself a raise! OK, well gradually. I want you to focus on slowly increasing your overall position size. Too often we lose sight of our profit potential as the year progresses. We focus on strategy refinement, and study our winners and losers. This year take an active approach to slowly raising your position sizes as you get better. Don't jump up too quick. Plan the year out and see how things go if you raise your position size 5% each month or some percentage that allows you to grow.
The second thing to focus on this year is the number of positions you have on. The trading world has shifted greatly in the last few decades. It used to be that you would study, and search for the next big winner, and then go for it big. Now we know that its actually more profitable to have many positions on at the same time, but all with smaller allocation of capital. Make this the year that you make more money by spreading out over many positions.
Finally, take a moment and look back at your biggest gainer and biggest loser of 2017. Chances are they are related in some capacity. Your biggest winner was likely a losing position you added to and then got lucky to see it move in your favor, thus creating a larger winner than normal. It may also be that your largest loser was a position you added to and it never turned for you. What would your year have looked like if you could nix both of those positions? Make this the year you stop that and trade smart!
There are many things we can focus on this year, but try and simplify by limiting yourself to only a few things, and happy 2018!