Consistency Is The Real Holy Grail Of Trading

Most importantly; more so than any other industry I have worked in, is the emphasis you must put on you. You are what makes or breaks your trading. You need to be focused. This means picking a time of day to trade where you can concentrate 100%. No distractions from family, work or day to day life. You have to start with the premise that commitment to trading is best done when you have the best environment, typically a peaceful and quiet time. This concept is difficult, as our industry portrays the trading being done from a tablet, phone, and even a wrist watch. This is just madness and marketing hogwash! As other industries embrace the mobile digital revolution, the brokers want to offer the next best new innovation, but what they fail to mention is the doctor may be using his tablet for imaging or the teacher the cloud for classroom preparation, but the important execution of their profession are still done in focused dedicated environments. So why as a trader would you place a trade from your watch on the tube going to work?

So from this bedrock of a strong strategy and focus, you will need 6 stage mechanism being Discipline, Routine, Principles, Rules, Control, and Patience.

Discipline is the overriding feature. Discipline of all 5 mechanisms and if your discipline falters in any area, failure is not too far away. You have to set up a system that suits you where there are consequences for not keeping discipline in any aspect. This is, of course, a personal choice; however, if you do not have the right consequences for lack of discipline for example such as to stop trading for the day or even the week or perhaps delay in buying yourself that treat then your boundaries can become blurred and you may lose focus. Working alone as a trader means you do not have your boss there to keep you in line. Mental discipline is difficult when you are sat there alone. Personally, I do not have a consequence system I have a trading buddy, and he keeps me disciplined because I do not want to have to explain to him my conduct for not sticking to my rules of engagement when I took a poor trade.

As you read this you will hopefully find that all these mechanisms trickle down from the overall aspects of trading right down to pushing the button to trade. As routine is so important, your overall approach including when you trade to where you trade, all the way down to the procedure you establish when executing a trade will form the basis for a structured routine.  Your routine is a safety net which is linked to the discipline which makes you commit to your routine every time. If you trade outside of your trading plan (routine) then it will more than likely be the wrong trade, a punt you have taken without forethought and yes you may get some big wins but consistently over time you will not be trading and you will not be set free.

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Simon Cotterill 2 years ago Author's comment

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

Barry Hochhauser 2 years ago Member's comment

Enjoyed this, thanks.