Precisely what does it mean to be a consistent trader? It implies to stick to your trading plan, strategy, and trading system under any market conditions. The talent to be consistent and also have the confidence to follow your strategy and trading plan is essential to obtain positive results. In this section of my foreign currency exchange trading tips series I will be covering the main primary advantages of perseverance and being a consistent Fx trader.
Consistency permits you to reap the benefits of compounding: compounding is the ability of an asset to generate profits, which are then reinvested in order to generate their own earnings. Quite simply, compounding refers to 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 confronted with 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. For this reason they are more profitable and earn 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 degree of success us because they fail over and over to be consistent. Once you become consistent profitability is just around the corner.
Consistency will permit 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 pay more attention to other opportunities that are around that you might not have seen because you were too busy trading.
As an example, I recently found a highly profitable trading system while I was grilling some food at the lake (and of course trading). I almost could say I discovered it by accident. However, I might have never found it if it wasn’t because I had some leisure time on my hands. Focus on becoming consistent and it will allow you to be more perceptive and discover new opportunities.
To become consistent focus on the process not on the profits: This is one of the primary things I have learned about trading. Anyone who concentrates on the money will not succeed as a trader. Why? Because as humans we do not see $5,000 as a trading transaction we percieve it as a month’s salary or the bills for one month. Nevertheless, a trading system sees $5,000 only as a number and executes whatever order we give to it. As a result, a trading system permits you to remove your emotions out of the equation and profit consistently.
I've seen several investments opportunities but I have never seen one as rewarding as profitable foreign currency exchange trading. In conclusion, the power of consistency can do incredible things for your trading as well as your life and becoming consistent and disciplined has to be your higher priority.
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