If you ask a group of profitable Forex traders what is the biggest factor in their success, you will likely hear the word “consistency” more than once.
Unfortunately, achieving consistency is easier said than done.
However, by creating your own processes and setting trading rules, you can achieve the following: Consistency of executionthis is the first step to becoming a consistently profitable trader.
Contrary to what the rebels would have you believe, rules aren’t necessarily meant to be broken. Instead, they exist to help you turn positive trading behavior, or what works for you, into an acquired habit.
Setting rules and more importantly following them is very important. It creates consistency.
By having rules, you can train yourself over time to recognize certain situations and react automatically.
By training yourself to react automatically, your trading will be more consistent because you won’t have to spend as much time thinking.
You just react.
Developing rules that suit your trading personality may take time and experience.
But do you want to know a little secret?
Here are some tips to make these rules work for you:just believe them”
No magic spells or fairy dust required.
What good is a set of rules if you don’t feel like you have to follow them? You’ve done your homework and you know it has more winners than losers, right?
In order to follow your rules, you need to remind yourself of the possible consequences of violating them. These may be based on your past experiences and observations.
For example, remember when you set your stop too tight in a range-based trade and ended up stopping out before the price moved in your favor.
Next time you make a similar setup, you will feel the need to follow the stop loss rule to avoid another losing scenario.
It is more effective to come up with your own rules, since awareness of the possible consequences of violating these rules comes from your own experience.
What works for other traders may not necessarily work for you.
Moreover, it makes much more sense to come up with rules that suit your trading style and personality.
Now, don’t expect to come up with a set of rules that will ultimately give you a 100% win rate.
You can come up with tons of rules for every conceivable aspect of trading (entry triggers, position sizing, scaling in and out, etc.), but there will always be a day when the market throws something at you that no one was prepared for. We guarantee it is. for.
Remember that human emotions are unpredictable and the future is unpredictable.There is no certainty in market movements, so Trading games of probability.
Having a set of rules, rather than no rules at all, helps frame the market and create a system that helps you make good trading decisions in the face of uncertainty.
With time, deliberate practice, and experience, these rules will lead to a natural feel for the markets, good trading habits, and consistent profitability.
