Consistency is essential In all industries such as finance, education, athletics and retail. It plays an important role in financial trading and investment.
Over the years, only a few traders and investors have managed to achieve consistency. This explains why there are so many hedge funds shutter Six to seven years later. And why many traders fail in their trading activities.
However, we want you to be able to consistently make money, and we care about your success. In this article, we will look at some of the most important tips to use to become a consistent trader.
What does it mean to be a consistent trader?
Finance The market is always changing. Sometimes, the market very volatile while in othersit’s moving in upward or downward trend. It usually changes due to various factors such as natural disastersAnd the monetary policyearnings growth or slowdown and geopolitics Among other things.
What do we mean by “fixed”? Being a consistent trader means being able to Make money in all kinds of markets over a long period.
Historically, this has been a bit tricky even for legends like Warren Buffett and Paul Tudor Jones. They all go through periods of high profit and others when they incur losses.
but, The long-termthey Returns are usually relatively consistent. For example, Warren Buffett earned billions with a compound annual growth rate of 20%, which is above the S&P 500 average of 10%. As shown below, he has had periods of significant decline.
There are many benefits to being a steady trader or investor. First, it makes it possible for you Create a successful career Where you can easily anticipate your profits and losses.
Second, it’s a good way for you Master all market conditions. Finally, being an established investor or trader will give you peace of mind.
To be clear. To be a consistently profitable trader It does not mean that all your trades are profitable. This means that you make profits every month or every year.
Related “ When do you start your trading career?
How long will it take to become a consistently profitable trader?
Frequently asked question is how much time does it take In order for the trader to become consistent. The answer to this is Depends on several factors.
First, it depends on the time That new merchant spending in demo account and learn new skills. A trader who spends more time developing a strategy and back-testing will always take a shorter period to become profitable.
Second, is Depends on skills owned by the merchant. In most cases, people skilled in areas such as fundamental analysis and risk management tend to be more consistent faster,
At DTTW, we’ve been in the trade for more than two decades. In this period, thousands of merchants passed through our company. in the middle, It usually takes 6 to 9 months to become a profitable and consistent trader.
Related “ How much do traders earn today?
How to become a consistent trader
Get to know the market
There are many things to consider when you want to be a consistent trader. Or not, Take your time to learn And the practice around the market. A common mistake many new traders make is to open a demo account and execute so many trades that they become profitable.
After that, they all go, assuming they are now excellent dealers only for them to lose money within a short period (like a casino player). So, take your time to learn about the market and practice in a demo account.
Have a good guide
Second, get mentorship from experienced traders and investors. The good thing about DTTW is that we have traders who have been with us for over two decades. These traders are always ready and willing to train new traders.
Having a good guide Who has been in the game for a long time It will help you develop the skills to become a consistent trader. They will guide you on how and how to navigate different market conditions Avoid incurring huge losses.
A good way to start is Subscribe to our site Trader.tv YouTube channel. It is made up of traders who have been in the game for more than 20 years. The channel hosts live trading sessions from Monday to Friday. Subscribing to it will give you all the information you need to be successful.
Moreover, create your own trading routine. A routine will help you Be a consistent trader in several ways. A good routine can include:
- Having a trading diary
- Primarket Engines Analysis
- After stopping all your trades
Among other things.
finally, You should always have good discipline. This means that you should always do many things like getting stop loss and take profit for all your trades.
Also, you should make sure you keep track of your journal, trade what you know well, and always place your trades well.
How to make consistent trading profits
There are many strategies that you should use to make consistent trading profits. First, you should always have a trading plan in place. Will a good plan tell you when to buy or short advantage. This involves Technical And the Basic analysis and price movement Analytics.
secondly, Be in a commercial office. In most cases, retailers tend to underperform when they do it alone compared to their performance in a trading desk. We recommend that you start your trading journey on the trading floor. As you gain consistency, you can go ahead and start on your own.
Third, always have a good risk management strategy in place. The thing we often recommend is to always place stop loss and take profit. When you have a good stop loss and take profit strategy, your profits and losses will always be constant. Moreover, you must Always select the position size And the use good leverage.
The most consistent trading strategy
A common question is about the most consistent trading strategy. There is no single answer on this question. If you ask Warren Buffett, he will tell you that being a long-term investor is the most consistent.
On the other hand, if you ask a trader like James Simmons, he will make an argument that being a trader is best.
Any trading strategyWhen used well, Can lead to consistency in trading. All you have to do is design it and test it well.
From now on, it should be clear why it is important to be a consistent trader. This is especially true if you want to pursue a career in the financial markets.
In this article, we looked at ways to become a consistent trader. We have looked at What is consistency (Remember that this doesn’t mean there are only winning trades) and why they are important.
Also, we evaluated if there is any good strategy that ensures consistency in your trading.
Useful external resources
- How long does it take for an average to become consistent? – reddit