What does it mean to be a consistent trader? It means to stick to your trading plan, strategy, and trading system under any market conditions. The capacity to be consistent and possess the confidence to adhere to your strategy and trading plan is essential to obtain good results. In this part of my foreign currency exchange trading tips series I will be covering the main primary advantages of perseverance and being a consistent Forex trader.
Consistency will allow you to get the most from compounding: compounding is the ability of an asset to generate profits, which are then reinvested in order to generate their own earnings. For instance, compounding is the term for generating earnings from previous earnings.
Through consistency you can make your profits work for you and produce much more profits. The science behind being consistent with your trading strategy is that you will become less exposed to the psychological manipulation of the market. Once you have a successful Forex strategy and you put all of your trust on it you will be able to commit less mistakes and never again close trading positions early.
Profitability usually comes with consistency: Disciplined traders are consistent with their strategies and do not deviate from their trading plan. Because of this they are more profitable and make more money than 90% of the rest of the other traders.
Once you have found a trading strategy that works for you the best thing to do is to stay with it and follow it to the letter. The main reason most traders never achieve any significant level of success us because they fail again and again to be consistent. When you become consistent profitability is just around the corner.
Consistency will allow you to open up your eyes and see new opportunities: When you follow your system and respect all of its rules you eventually master it and become pretty fast at executing it. This will allow you to be more conscious of other opportunities that are around that you might not have seen because you were too busy trading.
For instance, I stumbled upon a highly profitable trading system while I was grilling some food by the pool (and of course trading). I almost could say I stumbled upon it by accident. However, I might have never found it if it wasn’t because I had some extra time on my hands. Focus on becoming consistent and it will enable you to be a little more perceptive and see new opportunities.
To become consistent concentrate on the process not on the gains: This is one of the primary things I have learned about trading. Anyone who focuses on the funds is not going to succeed as a trader. Why? Because as humans unfortunately we cannot see $5,000 as a trading transaction we see it as a month’s salary or the bills for one month. However, a a Forex trading system sees $5,000 only as a number and executes whatever order we give to it. Consequently, a trading system enables you to take out your emotions out of the equation and profit consistently.
I know of several investments opportunities but I have not seen one as rewarding as profitable foreign currency exchange trading. To conclude, the strength of consistency can do incredible things for your trading and your life and becoming consistent and disciplined needs to be your higher priority.
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