It has been proven time and time again that the only way to succeed in anything new is to continue trying it for a period of time in a consistent evolving manner. If you do not do this, there is no way for you to distinguish between what works and what does not work. How will you be able to measure effectiveness if you are not performing what is being measured consistently? On average, new initiatives, processes, foreign exchange trading systems etc, must be used for at least 3 months before you can decide if it is a success or failure.
How can consistency affect your foreign exchange trading?
Consistency in staying with effective trading strategy helps you master the trading strategy and gives you a real chance to see if the trading strategy is worth using or not. Switching between trading strategies too frequently will end up affecting your trading results negatively over a period of time. How will you know if a trading strategy works without giving it enough time?
As we talked about earlier, you can only call a trading system a waste of time after you have used it for 3 months without positive results. If you do not have the ability to stay disciplined while using a trading strategy for at least 3 months, you will not be able to succeed in this market in the long run.
Consistency in risk management is also very important as it allows you to keep your losing trades under control and ultimately, your emotions. Traders who take trades with varying lot sizes end up getting trapped in an emotional roller coaster that will end up resulting in their giving back any form of profits they have made before finally blowing out their trading accounts. Learn to keep your risk consistent both after a big winner and a big loser, as this is undoubtedly one of the big differences between professional traders and amateurs.
To develop an effective trading habit, you must learn to keep a trading journal. There have been numerous examples in the past where a losing trader suddenly became profitable after taking out time to properly enter into a journal all the losing trades and profitable trades, as well as those that ended as break even. Many traders shy away from this but it isn’t really difficult to do. It is a little tedious of course but it is the only work-like thing you have to do as a foreign exchange trader. Unfortunately, only very few traders keep track of all their trades and this leads them into going off the rail, losing discipline and they end up not cultivating the habits that they need to successfully navigate this market.
The only way you can stay patient and consistent however, is to treat foreign exchange trading like the business it is and not like the get rich quick scheme it is often marketed as.