Tips to improve and enhance your trading performance in 2023

Trading in 2023 is no piece of cake for many reasons, well for starters trading has completely changed in the last two years. Trading in 2023 is very different from how it used to be in 2020,2021 and 2023. With recession just around the corner, inflation at a decade high, and rate hikes every quarter it’s becoming too much for the market to factor in. All the major global markets have given a 0% return in the last two years and that sums up the picture. Let’s see how we can plan and optimize trading in 2023.

Understanding 2023 and its Trend

2023 has been a roller coaster till now and the expectations are that it’ll continue to be so going ahead. The markets this year have already seen a rate hike suggesting that the market will continue to be bearish but it isn’t that simple. While the long-term trend remains bearish the trend is not particularly bearish. Incidents such as SVB and other major banks falling has shifted the flow of money to assets like crypto and gold.

This makes it extremely difficult for traders to trade knowing that a rate hike is on cards suggesting bearishness while markets aren’t reacting that way making it extremely difficult to ride the trend.

Patience

Every 5-10 years there comes a time in the market when the economies slow down, the risk of recession increases, and global growth is hampered all of these combinedly make it extremely difficult to trade but we should also remember that it is the natural cycle of the market and after every bear market there is a bull market. It can be the dot com bubble or the covid 19 crash, all bear markets start a new bull market.

Hence, patience will be highly tested going ahead in 2023 and if you show up on the other side of this phase then you will have a lot of trading opportunities coming toward you.

Reducing Risk and Journaling

With too much volatility around the market, it becomes important to understand that the downside has to be calculated in such times. To simply explain, to optimize trading in 2023 we’ve to manage risk in a better manner, and by reducing the capital and reducing our risk we can decrease the chances of deteriorating our trading performance in these markets. All professional hedge fund traders tend to reduce risk and investments when it’s a bear market protecting their downside.

Journaling is one of the most elective tools to improve your trading. It’s an effective way of collecting data that represents your personal trading style, your traits, and your trades. Journaling can be started by including factors like your entries, your exits, your risk, and most importantly your set of rules. Combining all of these the data that is collected helps in enhancing your trading performance.

Summing up

Trade execution is the real deal. It is the toughest part but it makes the job 10 times easier. If the risk is calculated well, along with journaling followed by a set of rules it can enhance your trading performance. To trade and improve in 2023 is going to be a tough job but with the right mindset and discipline, one can achieve it. Setbacks in trading are common but only the right attitude, discipline, and patience can help you reach your goals.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing