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  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. #11
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    Most times traders don't seem to understand how the market functions being that any plans or trading strategy will for sure take a lot of time to become effective, therefore the trader needs to keep on learning and then they can become profitable in the business. Learning is the best way of being profitable, learn to make one plans and then keep on making use of it to enable your success.

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  3. #12
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    Quote Originally Posted by Darkhorse View Post
    Most times traders don't seem to understand how the market functions being that any plans or trading strategy will for sure take a lot of time to become effective, therefore the trader needs to keep on learning and then they can become profitable in the business. Learning is the best way of being profitable, learn to make one plans and then keep on making use of it to enable your success.
    I am sure that traders could be successful by trading the market, but the trader that would be successful must be ready to do what the successful trades are doing also. They must posses the right trading experience and use what they know carefully well, that is what will help traders. It does not matter how much you know the market, what matters is the right application of what you know when you are trading it.

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  4. #13
    Trader Yayami's Avatar
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    Quote Originally Posted by ajagbeolegba View Post
    I am sure that traders could be successful by trading the market, but the trader that would be successful must be ready to do what the successful trades are doing also. They must posses the right trading experience and use what they know carefully well, that is what will help traders. It does not matter how much you know the market, what matters is the right application of what you know when you are trading it.
    according to me it does really matter how much we know about market because it will give us more clues about market possible movements and we can mark specific levels which we believe market could go there and there. after that we can gather another ideas and create a trading plan to reach the target for daily, weekly, monthly, or yearly profits.

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  5. #14
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    It is one thing to make the plans and then stick to it. I think that is where a lot of traders gets to make mistakes, by we make the plans and then when little hard time has been faced, you will see the trader changing the trading plans already. It is not appropriate to have a trading plan and not follow it for a long time and confirm it before making any modifications or changing.

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  6. #15
    Trader Senorita's Avatar
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    The plan we have here will help us to write up a good trade we could follow why we look on the dimension to succeed. We must stay consistent making better plans that will see to the development of our trade and its the right choice for traders to build up a good system of trade that will enable us make more profits when it's time. Plans are good and if we can learn about this business, the better we can build up our trade.

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  7. #16
    Trader Yayami's Avatar
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    Quote Originally Posted by Senorita View Post
    The plan we have here will help us to write up a good trade we could follow why we look on the dimension to succeed. We must stay consistent making better plans that will see to the development of our trade and its the right choice for traders to build up a good system of trade that will enable us make more profits when it's time. Plans are good and if we can learn about this business, the better we can build up our trade.
    consistency should be applied of few things first before we can start getting correct trades. first we must stop giving up our money to market and focus to learn with risk free account, in demo. after that we can practice everything we've learned in theory from guidebook, websites, or forum until we can understand basic knowledge about market first. spend next month to learn practicing with trading strategy.

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  8. #17
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    Quote Originally Posted by Makaveli View Post
    It is one thing to make the plans and then stick to it. I think that is where a lot of traders gets to make mistakes, by we make the plans and then when little hard time has been faced, you will see the trader changing the trading plans already. It is not appropriate to have a trading plan and not follow it for a long time and confirm it before making any modifications or changing.
    I agree with you, lots of traders are lacking consistency simple because they are not sticking to their trading plan, and that is the big problem for traders. This is being caused mainly by the emotion at which the trader is trading, our emotional has to be reduced to the barest minimum, and we should be disciplined in everything we are doing. But before those things, we must possess the right trading system and plans.

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  9. #18
    Trader layigold's Avatar
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    For any trading plan to be effective and consistently making a good profits , bulk of work and responsibility hangs on a trader and that is why the level of the knowledge a trader acquires plays a very dominant role in this respect . I have a proof to substantiate my point because two traders are most likely to get different results if given the same trading strategy with the same account size to trade with . The difference could easily be traced to trader's level of discipline , patience and risk management ability .

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  10. #19
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    Quote Originally Posted by layigold View Post
    For any trading plan to be effective and consistently making a good profits , bulk of work and responsibility hangs on a trader and that is why the level of the knowledge a trader acquires plays a very dominant role in this respect . I have a proof to substantiate my point because two traders are most likely to get different results if given the same trading strategy with the same account size to trade with . The difference could easily be traced to trader's level of discipline , patience and risk management ability .
    I think it is just simple as what the traders needs doing is making sure to stick to the plan and then the goals they have gotten, if you can stick to your plans and then focus on making good trades out of them we can improve. It becomes hard when a trader always changes the plans they have made over and over again, that is where the mistakes begins from.

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  11. #20
    Trader ola4real's Avatar
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    Quote Originally Posted by Darkhorse View Post
    I think it is just simple as what the traders needs doing is making sure to stick to the plan and then the goals they have gotten, if you can stick to your plans and then focus on making good trades out of them we can improve. It becomes hard when a trader always changes the plans they have made over and over again, that is where the mistakes begins from.
    It may look simple to begin to make regular income in the forex field but it is not easy in the actual sense, traders may lose everything in the time they are planning to make it big and consistently. I think that we should look for a good trading pattern with high level of management and discipline, that may be the solution to consistent earning.

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