How to Become a Consistent (and Successful) Trader?
Generally, there are no hard-hitting rules to succeed in stock trading. However, consistency is a factor that comes closest to being that rule. Ask any successful trader and you would likely get the same answer with minor differences…..
Consistency is a key for successful trading.
But again, pulling this isn’t easy. Bringing uniformity in your trading style, strategy and patience is far from being easy. Were it easy, every investor would be sitting on piles of money, right?
If you’re in this game with a long-term vision, it is imperative that you grow yourself into a consistent trader for optimum return from every trade. How to do that?
While consistency comes from experience, which one gains after many wins and losses, here are 5 expert tips for beginners like you:
1. Get away from your emotions
“Trading decisions should be made as unemotionally as possible,” said Richard Dennis. And it couldn’t be truer. When you let your emotions sway your decisions, you’ll likely trade out of your set framework, making you more prone to mistakes. So even when experiencing big price slumps or any other extreme instances, keep your sanity on grounds and emotions packed in suitcase.
2. Maintain a trading journal
This is the most clichéd tips – but highly effective. When you keep a live trading journal, you keep track of everything that’s happening in your trading journey. You are in know of your trading style and persisting trends. When things start looking inconsistent in your journal, you can easily fix that with right actions.
3. Don’t run after every price swing
New traders want to make more money at the quickest of time. So they trade on every price swing, which not only is too hectic, but also, eventually, leave their entire trading process in a complete mess. Plus, you can’t really catch every price swing for optimum return. So be thoughtful, trust the market trends and, most importantly, trust your own patient trading style.
4. Be definite in your take – loss position
You must have a definite figure of how much you can afford to lose on a trade. So before entering in any trade, set your take – loss position clearly. Don’t go beyond that position, unless it’s a part of your trading strategy. When you’re true to your take – loss position, it brings consistency to your trades.
5. Don’t follow every industry expert
Every trading expert has their own bits on how to trade the right way. From their view, they are not all wrong. After all, success in trading comes from individuals’ own experience, style and goals. So while it’s good you have someone to follow, following every industry expert could be very confusing and fatal. So pick one-two names that are reputed and experienced and follow their tips and advices closely.
These are 5 tips for beginners to bring more consistency in their trading. Start implementing them from today and see yourself turn into a pro in no time.