Want to improve your trading habits? Here's a breakdown of key strategies from Louise Bedford to help you take control of your trading - and your mindset. Less fluff, more action.
Step 1: Build Foundation Habits with These Essentials
Forget "21 Days for a Habit"
It doesn't take 21 days to form habits, it’s all about triggers and rewards that "stick." Here’s how to make habits form fast:
Strong trigger (clear starting point).
Immediate reward (makes you want to repeat it).
Example: Avoiding "prawn mistakes" (like allergy triggers) strong emotional moments lock in our brain’s responses. Use a similar method for your trading by identifying key habits that create immediate wins.
Start Small to Stay Consistent
Focus on tiny actions you can repeat. Begin with something almost laughably simple:
Spend 5 minutes reviewing one trade decision daily.
Write one sentence in your trading journal.
Momentum comes from small, consistent wins.
Step 2: Use the 3 Pillars of Effective Habits
Measurable: Can you track it? Example: Note whether you journaled after each trade this week.
Frequent/Immediate: Repeat daily or weekly, not sporadically.
Confidence Scale of 9-10: Start with actions you’re sure you can stick to, not overwhelming goals.
Step 3: Game-Changing Habits for Traders
1. Review Stopped-Out Trades
Dedicate time weekly (short-term traders) or monthly (long-term traders) to review trades that failed.
Analyze: Did you follow your plan? What caused the loss?
Why it works: Learning from mistakes ensures improvement in your process.
2. Examine Skipped Trades
Review decisions on trades you didn't take. What stopped you? Compare with the ones you executed.
Tip: This shows your trading edge. Are the trades you avoided underperforming consistently?
3. Hold "Boardroom Meetings" (With Spouse or Yourself)
Schedule regular meetings to check alignment on your goals, results, and plans.
Benefits: Builds accountability and tackles misconceptions about trading.
4. Keep a Deep Trading Journal
Move beyond just logging trades. Dive into emotions, biases, and decision-making thoughts.
Step 4: Align Habits with Your Core Values
Ask yourself:
What’s your vision as a trader (and as a person)?
Do your current habits reflect this vision?
What tiny habit could you start today to bridge the gap?
Example: If your goal is to build trust with a spouse, include them in your plan with clear communication and openness.
Practical Application: Your Next Step
Pick one habit today:
Start small: Choose a habit you’ll confidently rate 9/10.
Define the action: Schedule it into your week (trade review, journaling, or planning a spouse conversation).
Stay accountable: Use a calendar or reminder system.
Commit to applying this in your trading process immediately.
Reminder: Don’t Overcomplicate It
Focus on habit-building as a gradual process. Small, meaningful strides lead to lasting success.
The goal is to take tangible steps that directly improve your trading game. Which habit will you start with?