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I write a lot about the tactics involved to be successful trader. Specifically, I talk about strategic moves like using option spreads, covered calls, or index puts. Those are the buttons we push to help us make money, but there is something else we need to discuss: How to get better each day. It really comes down to three basic trading tips.

Three trading tips that will make you a better trader

These tips are the “blocking and tackling” strategies that protect our capital and trades. Like the offensive linemen on a football team, knowing these three things gets little credit but is critical for your success.

Accept that you will never know it all

Any trader who thinks they know everything, well … let me say this: Your ego will get in the way, and you will be separated from your wealth very quickly.

Most successful traders are humble. They don’t pretend to know it all. They don’t brag about big wins or rub it in the noses of others. Instead, they focus on winning consistently and reducing their losses.

By setting aside your ego, you can be a more resilient trader who moves forward after facing a loss.

Keep learning

Finance and trading are part of a vast universe of knowledge. There is so much to learn. If you’re not willing to put in the time to learn, you’re eventually going to fall behind.

There are no shortcuts to learning. But you can separate yourself from the rest by doing just a little bit more. If you dedicate just 30 extra minutes each trading day to learning and trying new things, you will spend more than four days each year becoming a better, smarter trader.

I am a huge advocate of reading trading-related blogs and watching videos. You never know where you will find new tools and processes that can benefit your trading strategy. Experiment!

While you may not discover the silver bullet of trading success, you may find something that works for you on a regular basis. (Personally, I use the technical analysis universe as my textbook.)

Have a feedback mechanism

Trading is a lonely profession. It’s you, your knowledge, and several monitors – maybe a dog sleeping at your feet. There is nothing better than having someone by your side to discuss trade ideas, tools, and strategies with. It’s one of the reasons our chat room has been so popular since I launched it several years ago.

I also recommend keeping a trading journal. At the end of each day, add notes – what worked, what didn’t, and what did you learn? What were trading conditions like that day? How would you handle the situation differently next time?

Reviewing your notes is one of the best ways to improve your skills.

If you’ve been trading for a while, what trading tips would you add to my list?

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