Being the Consistent Trader: Making Money in Trading Even When Your Strategy Fails
If you’re a trader, how often have you had a wonderful morning only to find that your winnings evaporate by the end of the afternoon? Now, would you rather spend all day monitoring the markets you are most interested in only to discover that there are no signals that can be acted upon, prompting you to try out other indicators or markets you’ve never considered before?
I’m curious to hear from those of you who have experienced this. Following your trading strategy, let’s say that you sometimes get up before dawn and feel ready to confront the trading world. Even yet, there are days you may get a late start and never feel like you’ve got enough time to make an effort to prepare yourself for a successful trading day appropriately.
Every single one of us has been confronted with this obstacle at one moment or another. An absence of consistency may be seen as the overarching message in these hypothetical situations. Although we all know in our psyche that consistency is paramount, few individuals take the initiative to explore whether or not it is actually effective.
What exactly does it mean to be consistent while trading and why is it so significant?
Being consistent in trading always means unwavering adherence in the same way to a defined set of guidelines. Because of this consistency, traders can make thoughtful judgments. As a result, one may expect consistent upshots. Every player in the forex market is perpetually on the lookout for steadiness and “consistency” is often used.
But, even though a small but significant percentage of traders will really make cash in this sector, one of the greatest challenges this profession presents is pushing the limit to be consistent. Traders who boast about their ability to be consistent are sometimes misconstrued as hoping they should make uniform gains regardless of market fluctuation.
This, in turn, highlights their psyche that there should be no room for the blunder. However, not seeking consistency isn’t the actual concern. The sustainability of this approach would be certain if one managed to avoid the large losses that often accompanied it and maintain a steady profit. Traders’ faulty trading strategies stem from their ineptitude in differentiating their moves and intended outcomes.
The key is about your consistent behavioural skill, not profitability.
Nobody enjoys a never-ending string of financial losses. However, successful trading on the markets requires careful consideration of risk and the execution of a well-thought-out trading plan. Forget about the weeks of hard work and steady profits you put in; all it takes is one slip of the emotional iceberg to ruin everything.
Of course, a foolproof strategy that is immaculate and grabs all of the pips bred by a market movement would be great; nevertheless, gaining an edge in the market is more about holding a trading strategy you are familiar with over time. According to these regulations, the trader may minimize the jeopardies associated with overtrading and under-trading and make a payoff.
consistent trading displays a variety of traits, including but not limited to Sticking to a trading plan, conducting research, managing risks and monitoring trades often are all essential. In addition, maintaining a consistent trading approach is crucial to financial success because it prevents traders from being swayed by their emotions.
From my background in the trading world, irrationality and irregular behaviour usually end up yielding unpredictable outcomes—and if that persists, there is nothing good that you could ever hope for.
Can we attain consistency in our dealings by following a tried and true procedure?
Yes, in the same way that people have different preferences in terms of trading techniques, you can also have different preferences in terms of how consistent they are with those tried and true tactics. Sometimes people stick to the established norms, while others make up their own. Impulsive or emotionally driven trades, or trading strategies, almost always end up being catastrophic rather than worthwhile. Traders are advised to weigh the pros and cons of each technique before settling on one.
Maintain a steady attitude and method of operation as your priority.
Forethought, risk management and keeping track of day-to-day activity and pricing changes are all crucial. It’s hardly rocket science. However, don’t change your tactics midstream. In the long run, you won’t go very far if you keep switching around your tactics and routine for no legitimate reason. As a result, settle on a single strategy and routine (one with a high likelihood of success and a high rate of return) and stick to them consistently.
Similar to the formation of a daily exercise regimen, this routine may be formed by consistently adhering to a methodical strategy. You can feel it fusing into your very being. For example, maintaining a consistent approach to managing risk and keeping tabs on your transactions can let you see patterns in your profitability. It’s a great tool for maintaining command and steering clear of analysis paralysis.
Second, be aware of the constraints imposed by the indicators you use.
Within the realm of technical analysis, indicators are the instruments that are most often misinterpreted. Let’s say you’ve noticed an Indicator that seems to follow the price action quite closely and have concluded that it is reliable. As a result, you use it without first taking the time to understand its capabilities.
There is always the risk that your preferred Indicator may stop producing the desired results as the market shifts. After that, you probably look for alternative trading methods or indicators and start the same process again. Traders may get a lot of insight by using price charts and learning how to interpret them. So, what course of action should one choose when confronted with such a circumstance?
From my point of view and based on my experience, examining charts would be best—and may be thought of as statistical pictures of the market’s movement as a means of deciphering the market’s signal and emotional undercurrents. Before using your chosen indicators in the real market, you should learn as much as possible about the computation behind them and be aware of their limits; otherwise, financial ruin is inevitable if such methods are solely relied upon.
Third, get some serious practice in action for good expectations.
Despite its obvious importance, numerous traders ignore educational resources. Consequently, their self-esteem is sabotaged and they decide that trading isn’t for them after undergoing setbacks. Even yet, this is not even close to being accurate. Trading is a skill that can only be acquired through time and effort. However, numerous strategies exist for capitalizing on market opportunities that have been discovered.
For example, traders who engage in breakout trading immediately purchase when the price breaks over a predetermined resistance level. However, sometimes they wait for the next candle to close before making a purchase. Is it possible that they are both correct? Yes, it could be. What matters most is that there is uniformity in transactions, which may be achieved in any of the ways described above.
Your Losses may be minimized through a brief trading course taught by pro mentors, extensive study and familiarity with risk management tactics. Traders may also stay on target by maintaining a consistent chart-reading habit and arming themselves with the appropriate data.
Trading isn’t all that difficult—in fact, it’s very straightforward—but it does need the appropriate amount of effort to be successful. You may be able to achieve financial independence via its successful fulfillment—but for that, it’s crucial to keep your head up through the trials and tribulations and conquer the mental obstacles of apprehension and fear.
Not being a competent trader is shown by throwing it all to fate and becoming rattled by repeated losses. But on the other hand, consistency in trading may be achieved by the right frame of mind, which includes regular action, enough experience, and extensive learning, which is what I define as consistency.