Importance of consistency in Forex Trading

Importance of consistency in Forex TradingBecause of its exceptional yields on low investments, forex trading is a huge cash generator of the current financial markets. The question here is how to generate those huge profits. Let’s discuss a scenario. A fighter pilot has a highly skilled job that to most of us seems very sophisticated, and rightly so. However, to the man or woman flying the plane, it’s nothing more than a routine that they have executed hundreds, probably thousands of times.

This also applies to surgeons or any other highly-skilled job that seems extremely difficult, if not impossible to the rest of us. This leads me to my next point; to the outside observer, a professional trader might seem like a very highly-skilled individual who does something that the outside observer would have no clue how to do. What do all three of these people have in common. The answer to this most important question is consistency. Consistency pays off physically, mentally and also financially.

Consistency

Consistency in all aspects of our personal and professional lives ultimately ends up building habits, and habits are really what define each of us. Whatever you consistently think about and do will become a habit, you have the power to decide if you form positive or negative habits by what you consistently think about and do.

If you consistently smoke cigarettes you’re probably going to develop a smoking habit, which is obviously a very bad habit to develop. If you consistently manage your risk correctly in the market and stick to your trading strategy and do not over-trade, you are going to develop some very positive and powerful trading habits that are going to result in you becoming a successful trader.

Consistency in sticking to an effective trading method like price action, helps you master your trading strategy and gives you a real chance to see if your trading strategy is truly worth using or not. Switching between methods or trading when your edge is not truly present hurts your trading results over the long-run.

Sticking to a strategy will help you in understanding whether your strategy works or not. Give it at least six months of consistency. If you cannot muster the discipline and mental fortitude to follow a proven strategy like price action for at least 6 months consistently, you will have a hard time finding any success in the market.

Consistency as a catalyst

A professional trader will take training and education, practice (demo trading) and then once they are ready, which will be a different amount of time for everyone but usually takes a period of years, they will begin making a living as a trader.

The “fuel” or the “catalyst” that allows a forex trader to excel in his career is consistency. Without consistency there is no success in trading or anything else in life.

Consistency as a success formula

Importance of consistency in Forex TradingIf you consistently trade according to your strategy i.e. don’t over-trade, consistently manage your risk properly and consistently maintain your composure after every trade, winner or loser, you will give yourself the best possible chance of making consistent money in the market.

However, if you choose to behave erratically by straying from your strategy i.e. over-trading, risking too much and generally gambling your money in the market, you will develop account-destroying trading habits. Most traders lose money as a result of having very inconsistent trading routines and never following through with their trading strategy or risk management plan.

A forex trader has the eventual power to control what he does and what he focusses on. You have the power to decide if you want to keep behaving inconsistently in the market, or you can decide to try and harness the power of consistency and use it to develop profitable trading habits. Consistently trading an effective trading method with discipline, like the price action method or any other methodology, it will eventually turn into proper trading habits which will then turn into making money consistently in the markets. There are no shortcuts for winning.

Conclusion

In any case, a forex trader may see capacities among the commodities of a trading platform but the success factor to all is consistency. Even if a water droplet is consistently dropping on a hard and huge stone, eventually it will make a hole in it. Most importantly, these consistencies in our forex trading later on become our habits. These habits are then beneficial for us in different ways.

We acquire the habit of winning. We acquire the habit of getting out of bad trades. We acquire the habit of understanding the market fluctuations and act accordingly. We acquire the habit of being calm in difficult situations. Most importantly, as discussed above, we acquire the habit of winning. All of it is possible because of consistency.

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