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  • Thursday 4 August 2022

    How to be consistence in your Trading

    Develop a Trading Habit

    You must establish a dependable trading habit free from gambling-like behavior. Being organized and disciplined can help you establish a routine that reinforces good habits rather than bad ones that might be expensive.

    Overleveraging or even overtrading when entering a trade is a common poor habit. If you win one or two of these risky transactions, you've already started to reinforce a bad behavior that is difficult to quit. These deals are always short-lived, and typically one bad trade can erase all of your profits.

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    Checking a pip value calculator and determining a safe lot size to enter a setup is an example of a good habit. By doing this, you may be sure that you're choosing a position size that will only expose a certain percentage of your account to danger, depending on your stop loss. Personally, I advise taking a 1-2 percent risk per trade.

    It should go without saying that you should choose and maintain positive behaviors over unfavorable ones. Positive habits improve overall performance and long-term outcomes in the trading game.

    Have a Goal

    Determine what you want from this and how you can practically accomplish this. For instance, I want to trade to get an annual ROI of between 60 and 100 percent. When I look back on the past three years of trading, I can see that my winning months have generally resulted in a 6–10% ROI per month, swing trading and rarely paying attention to my holdings. Finding incredible setups, letting them run until TP or SL, and trailing stops when profitable is all that is required.

    Making 60–100% year is more preferable to earning 170% in February and losing it all in March. Simply adopting a part-time perspective on your trading will increase your chances of success in this industry.

    Do not over Trade

    This is one of the simplest ways to keep consistency in trading for anyone who is unaware of the benefits of sitting out a trade. It seems counterintuitive at first, but it actually works.

    You must understand when to trade in order to know when not to. Learning an efficient trading technique, such as price action trading, market structure trading, news trading, or ideally a combination of all three, would be required to achieve this.

    You will be able to determine your trading advantage and when to trade by using a good variety of confluences in your trade settings. You'll know not to enter a setup if it lacks a balanced number of confluences.

    An illustration of this would be if you saw multiple sell indications from price action on Gold, such as a falling triangle pattern on the daily timeframe, or a rising wedge on the H4 timeframe, or anything else from a technical standpoint indicating a sell on Gold. However, it's possible that the Fed just declared that US inflation is on the rise and that the USD isn't doing very well from a fundamental aspect.

    Sifiso Nkwanyana

    Author & Editor

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