For those who ask a room stuffed with constantly worthwhile foreign exchange merchants what their “secret sauce” is, you’ll in all probability hear one phrase repeatedly: consistency.
Sounds easy, proper? Properly, not likely. Attaining consistency in your execution is likely one of the hardest challenges in buying and selling.
Opposite to what rebels might inform you, guidelines aren’t made to be damaged in foreign exchange.
They’re there to assist flip constructive buying and selling habits (a.okay.a. what works for you) into habits.
Following guidelines is what breeds consistency.
Whenever you’ve bought buying and selling guidelines, you practice your self over time to acknowledge acquainted conditions and reply routinely. As a substitute of losing psychological vitality overthinking each setup, you simply react. And that’s when buying and selling begins to really feel pure.
In fact, it takes time and expertise to create guidelines that really suit your buying and selling persona.
Right here’s the trick, although: the guidelines solely work when you consider in them.
You’ve already executed your homework, you’ve seen that they result in extra winners than losers. So, what’s the purpose of getting them when you’re simply going to disregard them?
To actually persist with your guidelines, remind your self of the implications of breaking them. That reminder is normally rooted in your individual experiences.
Keep in mind the time you set your cease too tight on a spread commerce and bought knocked out, solely to look at value go your means proper after?
Ouch.
Subsequent time, you’ll in all probability persist with your stop-loss rule as a substitute of repeating that ache.
And since that consciousness comes from your individual scars and classes, it’s far more efficient to construct your individual guidelines slightly than copying another person’s system. What works for different merchants received’t essentially give you the results you want.
It makes way more sense to have guidelines that match YOUR buying and selling model and YOUR persona.
Now don’t child your self – no algorithm provides you with a 100% win ratio. You’ll be able to map out entries, place sizes, scaling methods, exits, the works… and the market will nonetheless discover methods to shock you.
That’s as a result of human emotion is messy, the long run is unpredictable, and buying and selling will at all times be a recreation of possibilities.
However having guidelines (versus none in any respect) helps you body the market, construct your system, and make higher choices in the midst of all that uncertainty.
With time, deliberate observe, and expertise, these guidelines provides you with a pure really feel for the market. They’ll form good buying and selling habits. And finally, they’ll lead you towards consistency and constant profitability.
