How to Trade in 2021 Successfully

It may be a new year, but the volatility and investor cautiousness that defined 2020 has continued to follow us. On the first day of trading for 2021, we witnessed the Dow tumble 647 points over questions of whether there will be much economic recovery. 

With so many uncertainties still in the air, investors are asking themselves how to trade in 2021 in order to stay one step ahead of the herd.

How to Trade in 2021

It’s finally 2021, and we think it’s safe to say that everyone is ready to put the past 365 day behind us.

So we’re starting off this year right by being proactive and getting all of our ducks in a row — now. Having a trading plan with proper risk management will take your trading to the next level and teach you how to trade in 2021.

If you find yourself having problems managing your portfolio positions, getting into trades or controlling risk, you’re not alone. 

We know by now that emotion and trading don’t often mix. When we can get overwhelmed with emotions or fall into a “get rich quick” mindset, it can skew our logical way of thinking and lead to less-than-ideal trading decisions. 

The key to learning how to trade in 2021 is to keep your emotions in check. You’ve likely heard us mention this idea before — it has become a sort of war cry of ours, and something we’ve spent years practicing to great success.

When you can enforce this practice for yourself, it means that no matter if the market is up or down, you’re able to remain levelheaded and not lash out emotionally or irrationally on a trade after hearing certain news.

And the best way to keep your emotions out of your portfolio is by learning how to be proactive instead of reactive.

One of the biggest issues for investors in 2020 was that many of them resorted to emotional and fear-based trading. People were trading based on the news and the reaction of others trying to determine what’s going to happen next.

If you want some structure in your trading and a new game plane for 2021, then make sure to watch our video below to learn how to trade in 2021!