#1: Consistent actions lead to consistent results
I remember my first trading system.
This is the Bollinger Bands mean regression strategy.
You buy when the price is low and sell when the price is high.
The first few trades I made were winners, and then losses came. I think this trading strategy does not work.
So, I keep going.
Next, I stumbled upon the harmonic pattern.
I spent half a year learning how to draw these patterns (guess I am a slower learner).
In the beginning, I won some, but slowly, losses began, eroding all my profits.
Once again, I told myself…
“This trading strategy doesn’t work. Let’s try something else.”
The same pattern was repeated again.
I have some winners, some losers, and I gave up this strategy.
One day, I asked myself…
“Why is it always like this?”
“Why is there no consistency in my transaction?”
“There are always a few winners, and then the losses pile up and take everything away.”
Do you know what I realized?
The problem is me.
I am jumping from one trading strategy to the next.
My behavior is inconsistent. And because of my inconsistent behavior, I got inconsistent results (nonsense).
So don’t make my mistakes.
If you want to get consistent results from trading, you must act in concert.
Stick to a trading strategy, master it-and move on.
#2: Your trading strategy must have advantages
Now, being consistent with your behavior is important in trading.
But this is not all, because you must also have an advantage in the market.
You may want to know:
“What does it mean?”
This means that in the long run, your trading strategy must produce positive results.
If not, then no amount of consistency will save you, because you will eventually become a consistent loser.
do not trust me?
Then go to the nearest casino and keep betting.
You can be consistent with your risk management, bet size, games you place, etc.
In the long run, you will still lose because you have no advantage in the casino.
The same is true for transactions!
You must have an advantage in the market, because without it, no amount of consistency, risk management, trading psychology, etc. can save you.