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    Registered user 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 08:18 AM. Reason: change some words

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    Registered user Azis Muslim's Avatar
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    Quote Originally Posted by ola4real View Post
    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.
    In theory or by the looks about trading forex market, everything seems easy to do and profits are easily achieved. In fact the efforts to do that are hard to understand and difficult to do because market could change our psychology easily and will change us from a calm person into angry ones just in one swing of wrong trading direction. Consistency in trading is a myth for traders who do not want to learn from their mistakes and kill their bad habits.

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    Quote Originally Posted by Azis Muslim View Post
    In theory or by the looks about trading forex market, everything seems easy to do and profits are easily achieved. In fact the efforts to do that are hard to understand and difficult to do because market could change our psychology easily and will change us from a calm person into angry ones just in one swing of wrong trading direction. Consistency in trading is a myth for traders who do not want to learn from their mistakes and kill their bad habits.
    You are right, it will look so easy when traders are dreaming about the market or they are still freshers. But in the real work of trading, the market trading is never easy, and we have to get ready for it with all our efforts. Even at times, some traders will get weary, and quit, but i don't support that. The market is always risk, yet, there are good approaches to trade it well, that is what we should go for, and be earning with ease.

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    Registered user layigold's Avatar
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    Consistency in trading to the best of my own knowledge can be defined as , make pips , keep pips and repeat the process. Though that really sounds so simple but the bulk of work lies heavily on the trader himself . No matter how good a trading strategy might be , it is the trader that makes it work so , being consistent of a trading strategy begins with a trader. A trader needs ti be smart in recognizing when the market is trending and when it is moving sideways , this is necessary because the strategy that works well in a trending market might perform so woefully in a sideways market

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    Registered user debian's Avatar
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    Quote Originally Posted by ajagbeolegba View Post
    You are right, it will look so easy when traders are dreaming about the market or they are still freshers. But in the real work of trading, the market trading is never easy, and we have to get ready for it with all our efforts. Even at times, some traders will get weary, and quit, but i don't support that. The market is always risk, yet, there are good approaches to trade it well, that is what we should go for, and be earning with ease.
    You are very true , Buts The fact is that the main enemy in applying the consistency for the trading plan is our self, be it from attitude or mental that is still so bad when facing with the chart and want profit more and more. Because anyhow in the trader there is a greedy character and also has the ambition that when doing wrong analysis trader try as much as possible in order not to loss in any way even willing to wait for the order placed for profit even a little.

    And when traders want to admit mistakes and accept losses there will be plenty of opportunities that are wide open in order to gain another profit so the best way in consistency for trading plan is to set the target realistically and put a stop loss correctly and finally the ambition, revenge and greedy attitude can all be minimized

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    Maintaining the level of consistency is good and for this trade we should understand the need to plan on this trade and make good needs to improve in forex. More means to earn from forex is very important and if we can learn about this business, the more chances we can earn from this trade. Good planning is helpful and hence we plan on this trade, we can have all the means to realize forex. Good plans can really help us make a good trade and if we decide to work on the ability to trade good, it will come as a result of successful plans.

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  7. #26
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    This is very good plan that if one trading strategy is not work then choose the other trading strategy which is work fine for traders and this is really helpful for us because if we are use one strategy which accuracy is not high we will never get success on forex but if we are changed our trading strategy and choose a powerful trading strategy then our success is easily possible.

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    Quote Originally Posted by biru View Post
    This is very good plan that if one trading strategy is not work then choose the other trading strategy which is work fine for traders and this is really helpful for us because if we are use one strategy which accuracy is not high we will never get success on forex but if we are changed our trading strategy and choose a powerful trading strategy then our success is easily possible.
    That is where a lot of traders goes wrong and also make mistakes. Because when you have a trading plan, one has to stick to it for as long as possible. Due to when the trader is still new with any trading method they want to trade with, that would make them loss their money. You keep on switching plans and then you will keep on doing that for a long time, but being focused with one plan will increase our chances of being profitable with it in the future.

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    Registered user ola4real's Avatar
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    Quote Originally Posted by biru View Post
    This is very good plan that if one trading strategy is not work then choose the other trading strategy which is work fine for traders and this is really helpful for us because if we are use one strategy which accuracy is not high we will never get success on forex but if we are changed our trading strategy and choose a powerful trading strategy then our success is easily possible.
    It is during our learning times that we can be changing the our forex strategies, but when we have passed the learning stages, we supposed to have good strategy which we can have our full trust with. It is the strategy that will be planned with other good things which makes us to have our desired forex results. It will not be easy to get this, it will take much time.

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  10. #29
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    Quote Originally Posted by Brain View Post
    That is where a lot of traders goes wrong and also make mistakes. Because when you have a trading plan, one has to stick to it for as long as possible. Due to when the trader is still new with any trading method they want to trade with, that would make them loss their money. You keep on switching plans and then you will keep on doing that for a long time, but being focused with one plan will increase our chances of being profitable with it in the future.
    A trading plan is not what traders have to toy with, it is the same thing as the rule of trading of that traders. If traders dare to alter their trading plans, then the account of the trader might be finished through losses. Traders may have many trading systems, it does not matter, built our trading plan has to be consistent for us to earn consistently as well.

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    Registered user cutiekc's Avatar
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    I believe on keeping things simple, I make sure that I don't have unrealistic plans and expectation from the market. So therefore my plans is to always take nothing above 3 percent risk and then in addition, I should make sure that I am always following my 1:2 risk to reward, which means that if I should open any trades in the market it is either it gets to SL or TP, I hardly manually close my trades.

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