No matter where you are on your journey to becoming a successful trader, or even cementing your position as an already successful trader, you will be aware of a number of characteristics you need to possess. The list is long and includes such things as discipline, a winning attitude, a calm approach and dedication. In this article we want to talk about something that is not necessarily a personality trait but is something we feel isn’t considered as much as it should be, that is, consistency. What is it and how do you achieve it?
The first thing that comes to mind when people talk about consistency is being consistently profitable, it’s what ever trader aspires to however the implications of this are far reaching and go further than most people realise. Having an understanding of this is crucial to taking your trading to the next level.
When it comes to trading there are a number of elements that have to be consistently applied and only you can ensure this happens. Like most things in life you only get out what you put in and only you can honestly say whether you are doing the things necessary. Lets take a look at these elements in a bit more detail:
If you’ve followed our work before then you will know we’ve spoken about shiny ball syndrome. It’s easy to be tempted into switching strategies when the going gets tough, it should go without saying that this is the worst ting you can do. You need to commit to one way of trading, regardless of the short term results. When you’ve mastered your strategy you move in to the refinement loop but you must never deviate from the core rules, your whole edge depends on it.
Leant to Lose Well
People don’t like to talk about it but losing is a normal part of this game, it’s simply how probability works. As long as your loses are in line with you strategy rules then it shouldn’t affect you, it’s all part of apply your strategy consistently.
This is a big one, and often overlooked. Ask yourself how well prepared you are for the trading session ahead. Have you got a documented plan for the following day that highlights the potential setups? Without this you are walking into your trading session completely unprepared and the results you achieve will be comparable. It easy to get out of the habit of doing this, especially when you haven’t taken a trade for a few days and you rationalise with yourself that it’s ok to not bother completing your plan. This is the level of consistency we’re taking about, to do what you need to do, every day regardless.
At Traders Edge we’re also firm believers in having a routine outside of the market. We make a point of scheduling regular exercise and taking care of our diets. We do this consistently and make habit out of it. It no surprise to us that when you apply these principles consistently you start to see results and a benefit, the same applies to your trading, if you take an amateurs approach then you will get amateurs results.
We challenge you to analyse your own approach to trading, if you’ve not yet reached the goal of being consistently profitable then ask yourself what you can do to help get yourself there, only you will know the answer.