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Thread: Consistency for your trading plan

  1. #1
    Trader ara's Avatar
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    Consistency for your trading plan

    I put this thread here because it is part of Beginners guide. You find a lot of materials in this forum related to forex trading, of course it can be a library for you to learn more and more. I'm sure nothing is useless here, but if you think so then just absorb what is useful, discard what is useless and add what is specifically your own. It's so simple.

    As long as the market moves up and down, then it's fruit for you. How did it happen? Of course you should be able to DANCE IN THE MARKET. What the??? How to?? YES..., TRUST ME.., You can DANCE..., although you can't dance in the market, trust me you can dance ballet, tango, samba, or belly dance, or something else. But, really very surprising why in the world of forex trading where the comparison of win and lose is 50:50 almost 90% of people in it always fail. Though only need to determine buy or sell when will enter into trading position. Why it happened there was one thing in common between these people. Ie inconsistent in carrying out trading systems and unplanned trading activities.

    All things unplanned will lead to chaos in this case margin call or stop out. Not having money management in trading causes the trader to become a true gambler. A good trading plan will make our account can continuously survive and growth, we will also be able to read and also analyze the location of the error of our trading techniques. Without any trading plan we will not be able to make improvements to the trading system and the perfection of the trading system that we used will never be achieved.

    Examples of cases one form of improvement of trading system:
    There is a trader. After 10 trading days turns out the system that he uses is always lost. Though he always apply his trading plan in a disciplined and consistent. But the resulting consistent instead lose.

    If there is a case like this, if his trading didn't noted it will be difficult to evaluation or improvement. Maybe even he will change the trading system he uses with other trading systems. And when he realizes he has found a very good trading system. And when he realizes that in fact he has used a very good trading system.

    What the? why good ?? someone must be wondering. Is not the system he used always lose? Of course all trading systems have advantages and disadvantages, I can't remember how many times I say this in this forum, which obviously I often say this. That's why we should find and learn the advantages and disadvantages of our trading system, having a trading journal is a way to develop a trading system that we use, you should do a forward test to get a data of your trading history by using your trading system and evaluate it, do it again and again till you can make your trading system become profitable. Or at least, we can do back test if we are lazy to do forward test.

    Development of a trading system by a trader can only be done because he is consistent with the system he uses so he can make improvements to the system he has.

    Trading is a matter of probability but many beginner and middle-class traders do not have consistency in their trading system. In this thread I will first emphasize on the consistency of usage of trading techniques. Consistent I mean here is not changing the trading system used. But beginner traders often ignore this, when he trades with 1 technique when he suffers a successive loss and then he will change to another trading system.

    For example, let's say we already have backtest or forward test data for our trading strategy. So we know that the wining rate of our trading strategy is 70%. (How to do a proper back test/ forward test? just find it here.)

    Then he do a real trading, the result is: (let's say the result in his real trading is same with the data of test)

    1st trade : Profit
    2nd trade : Profit
    3rd trade : Loss
    4th trade : Loss
    5th trade : Loss

    (in this condition usually beginner traders will start "upset" and change this trading strategy to other trading strategy)

    So he will back to zero again and again, changing and changing again his trading strategy. He stuck on this phase for years.

    Conditions will be different if he is consistent in his trading strategy. let's say that he didn't change his trading strategy to other strategies.

    6th trade : Profit
    7th trade : Profit
    8th trade : Profit
    9th trade : Profit
    10th trade : Profit

    This is because the probability of the system is not so on win. Or even in 100 trading times, it could be the first 30 trades will be loss and the next 70 trading times will win.

    Well, so that our margin is able to withstand loss until 30 times, this is needed a risk management, this is where the importance we make a trading plan. You can also read about it here.

    "I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times."
    – Bruce Lee

    Those quote can inspire us that learning and practiced 1 strategy for a long time is very powerful compared to learning and practiced 10,000 strategies once. Well, for beginners please try to start consistent on your system and make your trading plan. Focusing on developing your trading strategy, learning a strategy longer is the best way, don't learn a lot of strategies at one time or change trading strategies too quickly, forget about finding perfection in a never-losing way of trading or holygrail. Consistent with "profits bigger or more than loss" is enough.
    If you can apply this then you will have the chance to survive and growth in Forex trading world.

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    Last edited by ara; 07-16-2018 at 09:18 AM. Reason: change some words

  2. #231
    Trader Toyen's Avatar
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    Quote Originally Posted by naeem555 View Post
    consistently earning is possible just with hard work and proper experience if we have it we can earn if we do not have this then we can not think to earn, so learn it and do trade as much as you can, any strategy can be better if we learn it fully, actually our plan tell us what to do and how to do, if we do not have plan we can not understand what is good or what is bad, so i recommend to always make some plan
    I do not have the doubt on it that the consistent earning is possible in the market. But traders have to know that what will make the consistent earning to be possible is only when they have the consistent plan and trading system which will make that to be possible. Training how to trade in the way that will construct the right trading approach for the traders is the solution to this, and experienced traders gets to be consistent when they are disciplined.

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  3. #232
    Trader Sascha's Avatar
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    skills and emotions control will help us to get consistent result in trading. we don't have to talk about how strategies play their part to bring us the consistency because it's already included as our trading system and become our primary key to help us get accurate trading. consistency means we can control both risk and our reward for our trading, while minimizing the loss and risk to their smallest amount and increase our winning bigger. we may open our trades sometimes but each trade has high quality to give us sure winning.

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  4. #233
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    what makes the trader changes his own plan is the bad results he can find from one time to another according to the different manners fro the analyzing , and then the trading ways can be very good to find the best effective strategies to be able to think of the excellent plans to prove its power which confirming of a mix of the most successful tools to find them in success trades .

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  5. #234
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    Abu George, i think changes of plan just works when we have good plan later, if we are doing same thing that is not good, or if we do not have experience still we can not get success, so learn trade and make sure you have proper management and proper analysis in your plan, and think before doing an order, if you do this you can get good orders easily

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  6. #235
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    Quote Originally Posted by naeem555 View Post
    Abu George, i think changes of plan just works when we have good plan later, if we are doing same thing that is not good, or if we do not have experience still we can not get success, so learn trade and make sure you have proper management and proper analysis in your plan, and think before doing an order, if you do this you can get good orders easily
    Change is to be introduced whenever it is needed either to make our trading better or to make it free of certain mistakes. We can earn pretty well in a trending market but we first need a well understood strategy. This strategy will guide us when to trade, what profit reward ratio can we expect and all. Just we should try to trade perfect time and earn money.

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  7. #236
    Trader Sixteen's Avatar
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    If we don't plan well, the end point is that we could have an easy loss in forex. Planning on this business is the right thing we must do and a great consistency in this business will help us trade better. Working on this business is something we should work for and do see we can draw a plan that will help us to succeed much better. Our plans here must be met and we should see we can learn from experience in other to get better. A good plan would work for us and this is possible for traders who would take learning seriously.

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  8. #237
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    The ability to make good consistent plan and then follow it is a great thing that most of is needs so that we can become profitable. We have a lot of mistakes that we do in the market. But when there is a good plan, we can focus and then avoid being indecisive as we trade, so therefore, it will be needed to always have the good plans been followed, trade with the most simple methods.

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  9. #238
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    Quote Originally Posted by Striker$ View Post
    The ability to make good consistent plan and then follow it is a great thing that most of is needs so that we can become profitable. We have a lot of mistakes that we do in the market. But when there is a good plan, we can focus and then avoid being indecisive as we trade, so therefore, it will be needed to always have the good plans been followed, trade with the most simple methods.
    good plan is possible just our good work is required, actually a good plan is easy if we do some hard work, if we know how to handle market, if we make some limits, in plan we need to know two basic things, how to make analysis and what strategies can be good for us, if we have done this then we can do 2nd thing and that is management, so make sure you have both things into plan its necessary for good trading

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  10. #239
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    Plans are helpful because it is what will give us every avenue to find out what can help us improve our trading and give us the means to become very successful in forex. If we must make good profits here, we should do well to plan on how this trade works and follow every chance to trade well. We must be consistent with this plans and try to understand how to get better while we trade and see that it brings us to the best chance to earn.

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  11. #240
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    Quote Originally Posted by Tonycee View Post
    Plans are helpful because it is what will give us every avenue to find out what can help us improve our trading and give us the means to become very successful in forex. If we must make good profits here, we should do well to plan on how this trade works and follow every chance to trade well. We must be consistent with this plans and try to understand how to get better while we trade and see that it brings us to the best chance to earn.
    plans will tell us what to do and how to do actually because if we have good plans if we know about market we can really make some sensible and good orders, so never trade without proper learning, if we do not have proper experience we can lose, if we do not have proper learning steps we can not survive for long, so any way can be better if we learn it fully, so learn first then think about earning

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