A doctor has a very skilled profession that many of us may seem very sophisticated. However, to any medical doctor treating the sick or doing surgery, it is nothing but a serious routine that they do almost every day and it might be something that they have done for a hundred times. This also applies to pilots and other highly skilled professions that look very difficult to you. This brings you to the next point; to other people, professional traders can also be very skilled individuals who execute something that outside observers don’t have a clue about. What do these individuals have in common? The answer is Consistency.
You may already know that habits can be key factors to success especially in trading. Nonetheless, there is minimal information out there that teaches you how to attain these habits of success. In this article, you will know more about the power of efficient trading habits and getting to know them so that you can have a profitable trading.
INCREASING YOUR TRADING ACCOUNT IS LIKE INCREASING MUSCLE POWER
When you exercise every day or consistently go to the gym even when you do not feel like exercising, can bring you better physical and mental health. When you consistently eat healthy food you can be a healthier person both mentally and physically. For an out of shape person, someone who does not exercise and has bad eating habits, it can be quite hard and rough for them to begin constantly eating and exercising right. This hardship is probably because they have negative habits and are so lazy to do what is right. However, healthy people basically find eating right and exercising right enjoyable because they have been consistently doing it and it has become part of their daily routine. Being healthy has shaped their lives.
This also goes true to going to school, waking up early in the morning, eating breakfast, and prepping up. On the other hand, if you regularly stay up late at night, you will know that this then transforms into a habit and waking up earlier can be very hard on your part. In general, sleeping early and waking up earlier can allow you to be more productive. This goes to show that when you take advantage of the power of consistency for your habit formation you can be very productive.
Constantly education yourself can help you become more knowledgeable, someone who will most likely earn more money and become more successful as compared to someone without constant education. The point here is that in all professional and personal aspects, consistency can build habits which can typically define who we are. To quote famous motivational speaker, Napoleon Hill “We are what we think about and do.” This means that whatever you think and do consistently you can make it into a habit and you can then have the power to make positive or negative decisions based on what you consistently think and do. For example, if you smoke cigarettes regularly you most likely have a smoking habit which is obviously very bad. Moreover, if you have consistent market risk management and stick to a good trading strategy without over trading then you can have a positive and strong trading habit that can help you become a successful trader.
YOUR HABITS ARE BUILT WITH CONSISTENCY
It is hard to decide if your strategy works or not until you try out something new for a certain time span and in a constant manner. How can effectiveness be measured if you do not consistently perform what you are measuring? Typically, six months prior to judging if it’s a failure or success, you can have fresh processes and structures. Minor changes are sometimes more ideal than major ones.
You can master your personal trading strategy when you are consistent in sticking to efficient trading methods such as price action. This can also allow you to identify if your own strategy is really worth it or not. However, your trading results can be generally bad when you switch between trading or methods and when you do not have an edge that is present. How will you know if you have a strategy that actually works if you do not give it a chance to prove itself? Try to be consistent for months to promote discipline and promote strength.
Risk management consistency is the key. When you ensure the consistency of your dollar risk for every trade you can actually control your losses and your emotions as well. If you differentiate your trade from one trade to another, you will most likely fall from a roller coaster trading ride which then results to giving all trading profits back and eventually blow your account. Hand risk consistency after a loss or win is the answer and this will probably be one of the most vital differences between professional and amateur traders.
Track your trades consistently by recording on a journal. By doing so you can develop a healthy trading habit. If you were lost in your path, you can get back on track by recording everything you do related to trading on a journal. It may be a tedious task to do but it actually works in helping you succeed. You have to put in mind that your business growth needs a track record of its success. If you shift gears a lot then it would be hard for you to track what is going on.
CONSISTENCY CAN LEAD TO TRADING SUCCESS
A doctor started learning how to treat people inside a classroom and then moved to the hospital setting and finally after years of studying and training, began treating an operating people. Similarly, a professional trader will take the same course- education, train, practice in a demo account, and then trade using real money. The catalyst that can drive you to improve in any career is consistency. Even if you are working at the smallest company doing simple tasks, you have to start at a smaller setting where you learn first and then apply later. Master the formula towards trading success which is consistency equals habit equals good results, and then you will surely succeed at your trading goals.