An Engineer has to clear till 12 Class, than Clear Pre Engineering entrance test Like IIT/PET. Get into a good college he needs to again clears 42 Exams in 4 years and finally, after probably years of training and education, he gets a Job and there again he need to take training to lead bigger projects.
Similarly, surgeons begin mastering their craft by first obtaining education / training and then they might practice on cadavers in the lab or shadow a mentor in a real lab setting, and then finally after years of practice they are ready to operate on a patient by themselves.
A professional trader will take a similar course (or at least they should); training and education, practice (paper trading) and then once they are ready, which will be a different amount of time for everyone but usually takes a period of years, they will begin making a living as a trader.
The “fuel” or the “catalyst” that allows all three of the above individuals to excel in each of these three very different careers, is consistency.
Without consistency there is no success in trading, becoming a Engineer, becoming a surgeon, or anything else in life.
As a trader we need to maintain consistency, try to focus on Risk management and Trading Journal
• Consistency in risk management is something that allows you to both keep your losses under control as well as your emotions. Traders who vary their risk a lot from trade to trade inevitably end up on an emotional roller coaster of trading that typically results in them giving back all their trading profits and blowing out their accounts. Keeping your risk consistent after a big winner or big loser is key and might be thee single most important difference between amateur and pro traders.
• Consistently tracking your trades and keeping a trading journal is something that you definitely need to do to develop effective trading habits. As a trader you need to write your trades and track every winner, loser and breakeven trade. This doesn’t take a long time, but it is a little “tedious” and is perhaps the most “work-like” thing you’ll have to do as a trader. Unfortunately, many traders don’t keep a track record of their trades and it results in them getting off track and losing their discipline and never developing the trading habits they need to succeed in the markets.
Being Undisciplined and Uneducated
A trader who lacks discipline can never make a successful trader. Most of retail traders are not having proper education and on the top of that not having discipline a sure shot recipe to blow.
The main culprits are what I like to call ‘System Jumpers’. These are traders that are constantly tweaking and changing their trading methods. These traders do not realize that learning to trade a system efficiently takes time.
System Jumpers are traders who lack the discipline to stick to, and learn how to trade, a system. They try it for a week and when it doesn’t work they jump to the next system or method.
The ‘formula’ for trading success
Consistency + Habit = Results
If you consistently trade according to your strategy (don’t over-trade), consistently manage your risk properly and consistently maintain your composure after every trade, winner or loser, you will give yourself the best possible chance of making consistent money in the market. However, if you choose to behave erratically by straying from your strategy (over-trading), risking too much and generally gambling your money in the market, you will develop account-destroying trading habits.
The good news is that YOU have the power to control what you do and what you focus on. You have the power to decide if you want to keep behaving inconsistently in the market, or you can decide to try and harness the power of consistency and use it to develop profitable trading habits. Consistently trading an effective trading method with discipline, like the price action method I teach in my trading course, will eventually turn into proper trading habits which will then turn into making money consistently in the markets.