Be Consistent Trader
- Thread starter arora
- Start date
Source :-http://traderfeed.blogspot.in/2010/01/how-to-become-more-consistent-trader.html
How to increase our unity, our ability to sustain consistency:
One powerful technique is to visualize the actions we wish to take *while evoking the emotional state that we are likely to be in*.
In other words, if we want to improve our consistency in honoring stop-loss levels, we should mentally rehearse stopping out of a trade while vividly imagining a market moving against us, evoking all the thoughts and feelings of being in a losing trade.
If we want to raise our trading size, we should mentally rehearse putting the larger trade on, while evoking all the uncertain thoughts and feelings of taking more risk.
Calmly talking about how you will handle stress doesn't help you in the heat of the action. You have to evoke that heat and *then* rehearse how you'll cope.
It is amazing how consistent you can become if you just rehearse your skills in the state of mind and body that you will be in during game time.
How to increase our unity, our ability to sustain consistency:
One powerful technique is to visualize the actions we wish to take *while evoking the emotional state that we are likely to be in*.
In other words, if we want to improve our consistency in honoring stop-loss levels, we should mentally rehearse stopping out of a trade while vividly imagining a market moving against us, evoking all the thoughts and feelings of being in a losing trade.
If we want to raise our trading size, we should mentally rehearse putting the larger trade on, while evoking all the uncertain thoughts and feelings of taking more risk.
Calmly talking about how you will handle stress doesn't help you in the heat of the action. You have to evoke that heat and *then* rehearse how you'll cope.
It is amazing how consistent you can become if you just rehearse your skills in the state of mind and body that you will be in during game time.
Brilliant stuff being shared here by Arora and Amit Ji. :clapping:
It's in human nature that we value and appreciate complicated stuff more than the simple one. I believe the KISS ("Keep it simple, stupid") principle is true for the markets as well. I've seen so many traders making CONSISTENT PROFIT by simply following Price Action.
Good systems are abundant and they are available all over the internet. However people often fail to realise that having a GOOD SYSTEM is NOT SUFFICIENT to make money consistently. You need to have sound knowledge about risk management, position sizing, one's own psychology/behaviour and last but definitely not the least, the DISCIPLINE to CONSISTENTLY stick to the rules of your system even when things are going against you.
It's in human nature that we value and appreciate complicated stuff more than the simple one. I believe the KISS ("Keep it simple, stupid") principle is true for the markets as well. I've seen so many traders making CONSISTENT PROFIT by simply following Price Action.
Good systems are abundant and they are available all over the internet. However people often fail to realise that having a GOOD SYSTEM is NOT SUFFICIENT to make money consistently. You need to have sound knowledge about risk management, position sizing, one's own psychology/behaviour and last but definitely not the least, the DISCIPLINE to CONSISTENTLY stick to the rules of your system even when things are going against you.
Profitable Traders
http://www.traderplanet.com/articles/view/165294-profitable-traders-are-not-consistently-profitable/
Excerpts
Every newbie trader wants to “arrive,” to be successful, to “make it,” to get to that point where they can make money consistently enough that they don’t have to rely on other sources of income.
Their ultimate goal is to be consistent. The problem is good traders are consistent with their methods, but their results are inconsistent in the near term.
Think about it from a poker player’s perspective. A good player that advances far in tournaments doesn’t consistently win hands. In fact he only wins one out of every four or five or six hands. His goal is to survive and not lose much when he’s dealt bad cards but then to make a killing when he has good cards or senses a good opportunity.
Trading is similar. You are given inconsistent opportunities so expect your results to be inconsistent. Sometimes the market is easy, other times is just gosh darn hard to eke out a small profit. Sometimes breakouts work great, other times they fizzle soon after triggering.
Every trader has strengths and weaknesses. When your trading style is in synch with the market, a good trader will take advantage of the opportunities. When not in synch, a good trader will know “when to fold ‘em” and patiently wait.
It’s important to keep your expectations in check, to have the proper frame of reference. Over the long haul you want to be consistently profitable, but do not strive for consistency in the near term. It’s impossible given the constantly change environment and opportunities. It’s ok to have a bad day or bad week or to lay low for a period until the trading environment improves.
Successful traders know the market hands them unequal opportunities, so they don’t expect their results to be consistent. You shouldn’t either. Just a like a good poker player, your goal is to survive when times are tough and take full advantage when great opportunities are offered.
http://www.traderplanet.com/articles/view/165294-profitable-traders-are-not-consistently-profitable/
Excerpts
Every newbie trader wants to “arrive,” to be successful, to “make it,” to get to that point where they can make money consistently enough that they don’t have to rely on other sources of income.
Their ultimate goal is to be consistent. The problem is good traders are consistent with their methods, but their results are inconsistent in the near term.
Think about it from a poker player’s perspective. A good player that advances far in tournaments doesn’t consistently win hands. In fact he only wins one out of every four or five or six hands. His goal is to survive and not lose much when he’s dealt bad cards but then to make a killing when he has good cards or senses a good opportunity.
Trading is similar. You are given inconsistent opportunities so expect your results to be inconsistent. Sometimes the market is easy, other times is just gosh darn hard to eke out a small profit. Sometimes breakouts work great, other times they fizzle soon after triggering.
Every trader has strengths and weaknesses. When your trading style is in synch with the market, a good trader will take advantage of the opportunities. When not in synch, a good trader will know “when to fold ‘em” and patiently wait.
It’s important to keep your expectations in check, to have the proper frame of reference. Over the long haul you want to be consistently profitable, but do not strive for consistency in the near term. It’s impossible given the constantly change environment and opportunities. It’s ok to have a bad day or bad week or to lay low for a period until the trading environment improves.
Successful traders know the market hands them unequal opportunities, so they don’t expect their results to be consistent. You shouldn’t either. Just a like a good poker player, your goal is to survive when times are tough and take full advantage when great opportunities are offered.
Sachin Tendulkar
"I have never thought where I will go, or forced any targets on myself.""I am not thinking too far ahead, just want to take it one thing at a time."
Same think we can also apply on our trading carrier. We must not force our self with any weekly or monthly targets (like i want to make 200 points weekly, want to make daily profit etc. etc.)
We have to just concentrate on our rules which we designed. We have to just concentrate on executing the plan the which we have made.
Focus on trading the plan. REST WILL HAPPEN AUTOMATICALLY.
Create your own tricks to fool the emotional mind. Above I have shared few which i use.
and also don't forget to share
"I have never thought where I will go, or forced any targets on myself.""I am not thinking too far ahead, just want to take it one thing at a time."
Same think we can also apply on our trading carrier. We must not force our self with any weekly or monthly targets (like i want to make 200 points weekly, want to make daily profit etc. etc.)
We have to just concentrate on our rules which we designed. We have to just concentrate on executing the plan the which we have made.
Focus on trading the plan. REST WILL HAPPEN AUTOMATICALLY.
Create your own tricks to fool the emotional mind. Above I have shared few which i use.
and also don't forget to share
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