What Does Consistency Mean In Trading ?

Hello traders:

Today let's talk about “consistency” in trading.

Many traders understand they need to be consistent, but what exactly is consistent in trading ?

To me, it's not just making consistent “profit”, rather it's being consistent with your trading strategy, risk management, trading psychology, mindset and emotion.

Let's take a look at a few examples of consistency in trading:

Consistency in profits:
More often traders think about hitting a set amount of % return in consistency.
This is certainly one way to look at it, but I would say to challenge ourselves to do more.
Each and every month, the market will develop differently, hence our profits are not gonna always be the “same” each and every month.
Some month with more profits, some month with more losses. We need to have the ability to stay “consistent” no matter what the market condition is.

Consistency in strategy and Trading Plan:
Remember, there are many different trading strategies out there.
The ability to stay “consistent” with your current trading strategy, and not jump from strategy to strategy.
Even if your strategy right now isn't getting any entries available in the current market condition, while others are entering trade, you need to stay consistent with your strategy and let the probability play out.
Understand no strategy can catch every move in the market. Some will catch this particular run, while others will catch other developments.

Consistency in risk management:
When you are at a series of drawdowns and losses, the ability to stay “consistent” with your risk management.
Not risking more than 1%, not entering more than 2-3 trades at a time. No revenge trade, and/or over leverage trade.
Respect your SL and honour the SL. More often traders fall into this stage while they take a number of losses and throw their risk management out the window.

Consistency in mindset and emotion:
When your strategy isn't playing out on a short term, the ability to stay “consistent” and not to start randomly taking trades based on FOMO, Greed and emotion.
Sometimes traders get impatient and feel like waiting for setups to happen is a hassle and they don't want to wait.
This is when they start to rush their trading journey and backfires on them.

Consistency in your goal:
Set goals for your result and progress. The ability to stay “consistent” with yourself and don't let external factors like social media, fake guru, scammers affect you and your goal.
If you plan to have 5% per month profit, then don't let other people affect you in a negative way.
Everyone trades differently, and with different strategy, method and approach. No need to compare and compete with others, rather, with yourself each and every year.


Below I will forward some good educational videos on the above topics that we have discussed:

Trading Psychology: Revenge Trading

Trading Psychology: Fear Of Missing Out

Trading Psychology: Over Leveraged Trading

Risk Management: Combine everything you learn to prevent blowing a trading account