Consistency Is The Real Holy Grail Of Trading

The world of trading is a strange old place. The retail trader is bombarded with information, knowledge and the promise of achieving overnight success that will deliver financial wealth beyond your wildest dreams. Or at least, in a short space of time. The convention is that trading will set you free - financially, socially and professionally. Is there any truth to these claims?

There is the occasional tale of glory, where a novice trader has bet big and it has paid off. However let me make something clear, If it is based on a ‘feeling’ or the flip of a coin your luck will run out. If you rely on that kind of trading it is tantamount to gambling. Therefore, on the whole, it is widely accepted that trading will not instantly set you free. Trading is a fantastic route to providing all the freedom I mentioned; however as with everything in life you have to put forth genuine effort. The inspiring aspect about trading is that it provides an equal opportunity vehicle to obtain all those freedoms, and with a low barrier to entry it can afford success to anyone who chooses to become a trader.  

Having said that, due to the constant barrage of ‘instant success’ ringing in the ears of retail traders it is difficult for some to travel the long and winding path to trading success. You need to change your approach and think of trading as a job that takes time, the correct application of knowledge, practice and most importantly patience.

Many traders become obsessed with a trading strategy, indicators, or the latest headline grabber to arrive in their mailbox. Remember, trading is about you, not the system. A trading strategy is not as important as the mind set you apply to it. There is always a chance you will correctly pick the direction of the market, but you may not make a lot of profit on the trade. Let’s consider briefly why this may be the case.

It is a fact that you need a trading system, and we will discuss this in later articles, however, as a general rule it needs to be clear, concise and does not need to have a whole host of indicators. The simple system that suits your personality will form the bedrock of your trading, which in turn offers you a fall back if things aren’t going so well. You have to be familiar and comfortable with it and trust it in order to build on it. Simplicity needs to be at the heart of your trading plan so that it can be easily interpreted and replicated as you put the pieces of the jigsaw together which is necessary in order to interpret the market.

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Simon Cotterill 1 year ago Author's comment

Thanks Barry. I'll write more and hopefully will continue to help.

Barry Hochhauser 1 year ago Member's comment

Enjoyed this, thanks.