Follow me as we take a look at the possibilities of consistent trading:
React faster and better
Imagine switching between different trading strategies all the time, it would be harder to know whether or not your trading strategy really works or not as you’re not giving it enough time to play out. By making your own rules that fit your trading style and most importantly, not deviating from them, you’ll gradually develop the ability to identify specific scenarios and react to them instinctively. Once you’ve learned to respond automatically, trading becomes more consistent as lesser time is spent on contemplating your approach to the situation.
Skip the emotional rollercoaster
When it comes to trading, mental and emotional exhaustion is a real thing that shouldn’t be taken lightly. The emotional rollercoaster that traders go through when they vary their risk a lot from trade to trade is no easy feat. To experience the extreme highs and lows in a short span of time will exhaust even the best of traders. Being a consistent trader and sticking to your own set of rules will help keep you grounded so that you’re able to make decisions in a level-headed way.
Play the long game
Whatever your goal is in trading, it’s hard to advance forward if consistency is something elusive to you rather than a personal mantra. If you find yourself drifting into new markets or indicators more often than not, it could be a sign that what you’re currently doing isn’t working for you. To be able to survive the ever-changing trading world, a well-managed routine and consistent market approach are key factors to long-term success.
Being consistent at one thing doesn’t come naturally, it is in fact a learned thing. Thus, consistency is a skill that requires one to continuously hone it to be better at it.
Plan a consistent routine and trading system
Before you can achieve anything, we’ll need to go back to square one: Planning. What this means is doing enough research to determine which one trading method that you can dedicate yourself to. By taking every area of your life and trading into account and evaluating carefully, you’ll be able to see which trading system is best suited for you . Keeping in mind that what works for others won’t necessarily work for you. Once you’ve established your own approach, we can move on to the next step.
Follow through with your rules
All that planning won’t matter if you don’t actually follow through with it. Giving in to other “better” or trendy trading strategies will only cause distraction and you’ll find yourself repeating the same cycle from before. So, be sure to commit to your chosen method and stick it out. Of course, there are times when you can bend the rules to make a profit, but that is if you’re already an experienced and seasoned trader to begin with…and that’s a whole different discussion.
Get better at it
However, even if you’re following the “best” system, you won’t be immune to losses and this is the hardest part for traders where they will be tempted to call it quits and switch methods. What we want from a consistent approach is to get consistent results. By not changing indicators and drifting from your original plan, your results won’t be automatically great but it will be consistent. If you use the same setup every time, you can slowly but surely identify the problems and mistakes along the way. Without the noise and distraction, improvements can be made to your setup and eventually, you can achieve consistently profitable results.
Understand this, consistency leads to habits formed, which then produces results. Keep in mind though, there will be days where the market will throw you a curveball and your rules won’t prepare you for it. Know that no set of rules will get you a 100% win ratio but having them can guide you in establishing a system and strengthen your decision making skill in the face of uncertainty.
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