Inconsistent Consistency

Inconsistent Consistency

Why are there not more profitable traders in the world?

There’s a simple answer to this question; Humans beings are not made to trade.

It can be even more difficult for highly intelligent people, mainly because highly intelligent people tend to over analyse things looking for answers and logic.

Yet markets are rarely logical.

Humans are emotional. We can be impatient. We can lack control. And we can be impulsive.

Many of us also have very strong egos and hate being told when we are wrong.

When trading you need to action your trades with as little emotion as possible. You need to exercise patience, remain in control of your emotions, resist being impulsive. And you need to lock your ego away in the closest as it is not going to serve you in the trading arena.

If you are able to achieve this, then you are more than halfway to becoming a consistent and successful trader.

Longevity in the markets can also help traders become more consistent. We need to realise that markets can often be very bad teachers.

We’ve all made money on trades that were poorly executed. We convince ourselves it was through skill.

We’ve all lost money on perfectly executed trades.  We then attribute this to bad luck, manipulators or perhaps a tweet.

Yet the markets are an illogical mess of human emotions. Full of traders, investors and larger funds all buying and selling for different reasons.

The key to your own personal consistency is to not worry about why markets fluctuate on a minute-to-minute or day-to-day basis.

No methodology works all the time. You will have success, yet there will also be blood on the table.

It’s well known that negative emotions have twice the impact of positive emotions. Even more so when a loss aligns one of those perfectly executed trades.

Becoming more consistent is not about understanding the markets.

It’s more about understanding yourself. Knowing that you are fundamentally not made to trade. Accepting this fact, and acknowledging that markets cannot be controlled, will mean better consistency in your trading now and into the future.

Give it a go.

Best of luck with your trading.