Should you ask a room filled with persistently worthwhile foreign exchange merchants what their “secret sauce” is, you’ll most likely hear one phrase many times: consistency.
Sounds easy, proper? Effectively, not likely. Attaining consistency in your execution is among the hardest challenges in buying and selling.
Opposite to what rebels could let you know, 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.
Once you’ve received buying and selling guidelines, you practice your self over time to acknowledge acquainted conditions and reply mechanically. As a substitute of losing psychological power overthinking each setup, you simply react. And that’s when buying and selling begins to really feel pure.
After all, it takes time and expertise to create guidelines that really suit your buying and selling character.
Right here’s the trick, although: the guidelines solely work when you imagine in them.
You’ve already accomplished 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 keep on 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 received knocked out, solely to observe value go your manner proper after?
Ouch.
Subsequent time, you’ll most likely keep on 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 somewhat than copying another person’s system. What works for different merchants gained’t essentially give you the results you want.
It makes rather more sense to have guidelines that match YOUR buying and selling type and YOUR character.
Now don’t child your self – no algorithm gives you a 100% win ratio. You possibly can 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 sport of possibilities.
However having guidelines (versus none in any respect) helps you body the market, construct your system, and make higher selections in the midst of all that uncertainty.
With time, deliberate apply, and expertise, these guidelines gives you a pure really feel for the market. They’ll form good buying and selling habits. And ultimately, they’ll lead you towards consistency and constant profitability.
