When you’re in the market or a trade, you feel like you always need to be. It get. But there are things traders can do to reduce losses when not trading. Let’s change the story and change how we look at things.
You want to take a break, I get it.
Maybe you are suffocated by work, or your kids are on a harsh moment.
You are super busy.
You got a job.
You’re taking a course.
You want to relax…
I don’t know what’s your reason, but if you’re reading this, you somehow can’t trade as much as you’ve been doing before. You want to trade less now, but without losing the money you have on the market.
Here are some things that you can to reduce your current and future losses.
1. Switch from Day trading to Swing trading
Your days of day trading and scalping may be over for now, but you CAN continue swing trading! Swing trading is a wonderful way to trade without having to check the market every two hours.
If you’re a busy woman now, then this type of trading is perfect for earning a good profit without worrying too much. With swing trading, you start a trade and have to hold your position on that trade for many days, or even longer than a week! That’s how you profit.
The good thing about it is: you can choose a simple yet profitable strategy! I used this one, which wasn’t time-consuming. Options trading is also a whole world that can be explored in this period.
2. Create a trading plan
There’s no better thing to do when you’re on a break than reevaluate all of your previous actions and plan how your next relationship (or trade) is going to be.
This excellent article talks about the 10 essentials to build your master plan for trading:
- Skill assessment
- Mental preparation
- Set risk level
- Set goals
- Do your homework
- Trade preparation
- Set exit rules
- Set entry rules
- Keep excellent records
- Perform a post mortem
You probably have done all of this before. But now that you want to take some time for yourself, it would be nice to make a checklist of what worked and what didn’t. See, you this is something traders can do to reduce losses when not trading.
What I usually do when I’m reevaluating my trading plan is that I crosscheck my trading journal with my initial plan and the rules I’ve created for myself. The moment that I see I lost money, I find out how I can strengthen my method to lower the possibilities of that happening again.
Seriously, even if you’re busier, study. There is nothing better to clear our heads than shopping for new clothes with our friends, I know. But if you want to avoid trading losses, keep on studying new things.
If you’re going to follow my advice and start swing trading, for example, study swing trading. If you’re going to trade options, you should be aware that it is a whole new world. In this article, I share with you some resources I’ve used to study. Check them out and become a trading intellectual.
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4. Work on mindset
The best trading booster ever. The mindset means everything for the trader. When not trading, you should work on the mistakes you’ve been doing that kept you from profiting. Maybe you’ve dealt with FOMO, and trading was torture for your sanity. If you want to close all your profitable tradings because you’re anxious about not having time to follow them, then you’re making a mindset mistake.
Okay, I know you have to work, study, and be a super mom all at once. But I know you have the time to take a peek at Instagram or Twitter: why don’t you replace it by taking a look at the broker? This way, you’ll be sure that your tradings are still profitable.
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5. Learn risk management
To reduce your losses when not trading, be well versed in risk management. We are women. Unfortunately, we were raised with many constraints, we take fewer risks and preserve our integrity. The good thing that comes to it is that we make better traders than men!
If you don’t have time to check your tradings every day, put a stop loss in all of them! I don’t think there is a single article in this blog where I don’t mention stop losses. They are a must for any trader.
Learn when to exit your tradings, so that you get the most out of them every time.
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6. Build an emergency fund
A must for every trader. If you’ve started trading without any kind of emergency fund, this is the time to build it.
If and when you have an emergency fund, you won’t need to close your tradings whether there is an emergency, really. Imagine you have a fantastic profit with your money there and then… your husband loses his job. Oh, well, this money won’t be making miracles anymore. The emergency fund would be handy in moments like these.
7. Having a passive income
Maybe you’re TOO busy. So busy you won’t even have the time to swing trade. That’s okay.
There is a way that your money won’t die in the bank account: you can invest and earn a passive income.
To invest is like to trade, with a few differences. Both mean that you’re lending money to someone or some company. Investing is perfect for those who don’t have time to trade. It’s a no-worry way to make money in the future.
The money you place in investment will be there for years. By the end of the expiration date, you’ll receive the money you have invested + interests. It’s a great way to save for retirement.
- High Return Peer to Peer Lending
- Passive Income with eToro Copycat Trading
- Passive Investment Funds
- High Return Property Pooling
- Passive Income from Crypto Mining
What are you doing NOW to reduce your losses?
Any more things traders can do to reduce losses when not trading?
I’d love to know how you spend your time when aren’t actively trading? What are you doing to improve your skills and success when not charting?
Comment on the box below and let us know!