Consistency is not One Big Winning Trade

Many new traders believe being successful at trading the markets is about hitting one single, big winning trade. Not really! Being a successful trader is not about one big winning trade. What really matters is how consistent you were over the last series of trades. What results you achieved over the last 10-50 trades by following your trading process?

Very common thing (or bad habit) among unsuccessful traders is they are always changing and tweaking their trading edge (strategy) too often. Instead of them making at least few 10s of trades on similar trading setup following their trading entry, exit, risk management criterias, they always change their parameters after just a few trades.

That is very bad thing to do, because becoming and staying consistently profitable trader is just a law of large numbers once you have proven trading edge. That means you should not expect to see your trading equity curve sky rocketing just after few trades (if you manage the risk and not over-expose your trading account).

Being a successful and consistent forex trader is not about risking 5% per trade on the next 2-3 trades (like they are the last trades you will make in your trading career) entering in them blindly, without any reasons,edge and hope you will make some profits.

Yes, you can do that if you have gambling mentality! But if you are serious about your trading business, you must play the long-term business. That means you do not plan your trading on the next 2-3 trades, but over the series of trades, over the next 10-50 trades with specific process parameters. Only after you have made at least 10 trades following the same process parameters you can go back, and analyze your past trades and decisions.

Now you can understand your consistency is not result over just a few trades, but over larger number of trades. You should not judge your trading results and performance after 2-3 trades made following your trading plan (process), but after you made at least 10-50 trades following the same trading parameters and rules on each and every trade you took.

How to You improve your Trading Consistency

Now you are probably asking yourself, “How can I improve my consistency on the next 10-50 trades, if I already have my trading edge?“.

Truth is, you do not FIND consistency. You simply apply it.

If you are watching “Billions” series on HBO you may remember how Bobby Axelords answered to one of his traders:

“Don’t ask another guy about your future. Make your own f***ing future.

Same thing we can say for your own trading – Do not ask another guy about your consistency. Make your own consistency.

Simply apply consistency to your trading. Applying consistency have a lot to with how YOU think, feel and decide later. In other words, we can agree YOU must be in the right state of mind to be able to focus and execute your trading process everyday without errors, distractions and mistakes. When you show up everyday and you put all your effort to execute your process and routine correctly day after day, week after week.

To be able to execute your process and routine without errors, distractions and mistakes you must do a lot of work outside of trading. Your goal should be always to put yourself in right state of mind before you even switch on your trading computer. How you eat, sleep, exercise, breath, prepare for the day… all those things are foundation for your mind and body. Once you have your foundations right, you will be able to perform much better trading the markets and executing your trading process without losing any focus.

Not Straying from What Works

There will be periods of drawdown. There will be periods when you will wait days,weeks for good trading setups and your patience will be tested. There will be days where markets will change conditions. There will be days when you just do not feel good due other life events. All those periods are where most traders lose their focus, patience, discipline and break their consistency. That is why you must train your mind and body to always try to stay positive and focus just on your trading process no matter what. Not straying from what works for you, and manage your emotions.

How can YOU expect to achieve consistent profitability trading the markets, if you are always in different mood with inconsistent process over the trading day?

If YOU are not consistent with your process everyday, inconsistency will just show in your results. If you are struggling with consistency you must be honest with yourself and fix this issue today. If you do not fix it, inconsistency can be really bad for your mindset – you will start doubting your skills, trading setups and hurt your confidence as a trader.

But, how can you build confidence as a trader?

You can build confidence only after you followed your trading process on the last 10-50 trader, and you saw trading results taking care of itself by you being consistent with the process.

Start Being Honest with Yourself

Let us say you have been trading for the last 6 months on your trading account, and by looking your equity curve you can see you are kind of break-even.

Now, be honest with yourself…

“Did you really follow your trading plan rules on EACH and EVERY trade you take?”

Check your trading journal. Check what results would you really acheive, if you would be more consistent every day, and would apply your trading rules on each trading setups like machine.

Consistency starts within YOU.

Consistency with your daily habits to bring consistent YOU to markets.

It is easy to follow your trading process when you feel good, and you are in the right mindset before you even open the charts. Do that everyday and applying consistency becomes much easier. Feel good, apply your trading plan rules like machine on the next 10 trades, and let the results come to you by YOU being consistent everyday.

Zan