How to Trade Forex Consistently
In one of my trader forums, I recently asked an important question to the students, ‘How does one trade consistently?‘ There were many interesting responses, some of them close, but none that hit the mark. There really is only one way to trade consistently, yet it seems to elude most traders.
My guess is most of you have experienced this inconsistency in your trading, moreso in the beginning, but perhaps even still today. Have you ever asked these question to yourself, ‘why are my trading results all over the board?‘, or ‘why can’t I seem to trade consistently?‘
If you have, you are not alone as most developing traders are not able to trade consistently. This was demonstrated very nicely in an article which explored forex profitability over 8500 accounts.
The key takeaway’s from it are the following 2 points;
1) Less than half of those who make profit in one quarter (2930) fail to profit in the next
2) For those who do profit back to back quarters (~15% of the 8500 accounts), about half can do it multiple times
Thus, 1 in 3 traders are able to profit over a 3 month period, less than 1 in 6 can do so in back to back quarters, and less than 1 in 13 can do so consistently.
The underlying point – most traders do not trade consistently. Thus the question has to be asked, ‘why are traders so inconsistent, and what can you do to trade consistently?‘
The answer is no, so what is the answer? How can you become one of those 1 in 13? Are they just gifted, or have some special talent you don’t?
Not at all, and this one thing you are missing is something you can completely develop. There is only one way to find it in your trading, but you’ve been looking in all the wrong places, so I’m going to share the answer now.
The only way to trade consistently, is to have consistency in your mind. Having consistency in your thoughts, actions and thinking will bring consistency in your trading. It is the only way.
To have consistency in your trading you need to have it in your trading mindset. This is where it all starts.
This is why we have a trading plan, so we have fixed variables we work with day in-day out. This is why we have rule based systems, for if we change the rules, how would we ever know what is working and what is not?
All inconsistency comes from the mind, while all consistency in performance does as well. If you are not focused in the moment, you will have inconsistency in performance, because the mind is on the moving thoughts – not the action you need to do in the moment.
Without a consistent picture in your mind what you need to do, how can you ever duplicate the results of your successful trading?
Do you think an Olympic archer has a completely different focus and mindset each time he pulls the bow? Do you think a professional golfer has no routine when hitting a golf ball? Absolutely not. They shoot / hit consistently, because they’ve programmed it into their mind what they need to do, and they just do that.
It is the exact same for trading.
Don’t have consistency in your trading and mindset now? No problem. The mind has neuro-plasticity to it, meaning you can physically build the neural pathways to think and trade consistently.
How do you build these neural pathways to trade forex consistently? There are several shortcuts you can take and do to build these in minutes per day. When you run these exercises and mind programs, you will find greater consistency in your trading then ever before.
I will discuss these shortcuts in an upcoming article, so stay tuned to the site for how to learn these tricks, and build consistency in your trading.
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