“The key is consistency and discipline. Almost anybody can make up a list of rules that are 80% as good as what we taught. What they can’t do is give (people) the confidence to stick to those rules even when things are going bad.”
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Ever thought that trading is getting rich overnight, like winning the lottery? Well, it’s not. Trading is more like exercising – you should do it consistently to see results.
Trading is not the underdogs clinching a surprise win in college football. It’s the team going all the way to the playoffs.
Sending your team of your own mental and trading techniques all the way to trading glory (and by this we mean, more consistent profits) requires one crucial ability – being a consistent trader.
Many newbies and seasoned traders alike may find it hard to be consistent players in the markets. When you have a consistent trading routine – combining both psychological and technological setups that work best for you – you’ll be ready to face any market downturn, volatility or trends against the stocks you’re long or short on.
Right. But, how do I do that, you might ask.
To make it easier for you, we’re listing these 7 steps to becoming a more consistent trader:
Table of Contents
#1 Make Trading A Habit
Find your own best time for trading, when you’re rested, calm, focused and able to quickly process the info you’re seeing on your screen. When you sit down for your trading session, always try to bring one and the same person to the game every time: your real consistent you, with sharp mind and reflexes that will help you stick to your trading plans and goals.
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#2 Create Your Own Rule Book
And then – play by it. How much money can I afford to lose (without giving up my way of living)? Where is my line of pulling back? Is this or that stock matching my trading strategy? Be prepared, using a consistent trading plan with rules that work best for you.
That said, in the game of trading, no market trend lasts forever and markets can turn bearish/bullish sooner than you think. So, you’ll need to know when you can break some of your own rules.
#3 Be Ready To Be Flexible
When markets go in the opposite direction than the one you’ve been expecting them to, be open-minded to tweak some of your strategy and rules. In the stock market, nothing is set in stone and your rules should not be either. You may be consistent, but markets are not.
#4 Eliminate Emotions
When the markets turn in the opposite direction, it’s important to keep calm. The calmer you stay, the clearer you’ll see. Don’t overtrade to compensate for losses. Every single trader out there has lost money in the stock market. Consistency and emotionless approach to trading will guarantee you that you’ll not be swept over by creeping fear and anxiety over your trades. Fear may stop you from executing an excellent profitable trade and you don’t want that, do you?
#5 Use Trading Software
But, when emotions play, your best buddy is trading software that can quickly find the profitable plays for you. Trading platforms that can do some of the heavy lifting for you will make you a more consistent trader and save some of your valuable time. You’ll have more time to focus on your psychological consistency while the software is doing the technological setups.
#6 Keep a Trading Journal
Regardless of the format – pen to paper, excel spreadsheets or apps – keeping a trading journal will help you see what went wrong (or just right) with your trades today, yesterday, last week and last year. Analyzing past trades teaches you what plays you’re good at winning and what you need to improve in your trading routine or strategy. Because, you know, there’s no such thing as the perfect trader. Trading is a constant learning curve.
#7 Be Consistent in Risk Management
Keep the amount you’re risking per trade consistent. One big win doesn’t mean you’ve become the greatest trader of all time. Don’t risk money you cannot afford to lose. Be realistic and don’t blow up your trading account with unreasonable risks because of your greed, or ego.
With practice and perseverance, you’ll sure build your own consistency routines and traits in trading. They can get your trading all the way to the Super Bowl and, why not — to the Hall of Fame.
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Very good info continuing to make a good trade. Limiting you loses are also very good. My emotions are that I am not making good trades. Trying to find the pattern and patience to do it correctly.
Thanks for the help am learning alot.
Not making anything yet.Maybe soon
Thanks great information I’ll take it onboard
Keith
Best wisdom advice. Very valuable advices. I will keep very single one of the advice in my mind, my heart and my soul. Thank you so much for everything. This will guide me for success in life. Wishing anyone who read this will keep the advice for their best success in life too.
Good post with good advice I agree with if only I could eliminate my emotions I try my best
Thank you life changing
Very Good Peace To All Love To All World Safe For Muslim And All! Trade For Good Money
Same rules I’ve been studying in Profit.ly… the most important one I hear Over and over is to cut losses quickly!! And the he more I here these rules the more it will sink in, so I appreciate it!
Thank you
That is sage advice. I am still studying and have not traded yet.
Thank you taking this to heart
this was helpful as im finally realizing how little consistency i have had until recently. i definitely see things alot more calmly these days thanks to it. thanks guys!!!