Consistency in Trading, what Does It Mean To You?

It is the “buzz word”, the “everything” and the “holy grail”. Yes, that eleven letter word, consistency, means so much to all traders whether they are just starting out or are the best in the world. So what does it mean to you? It is an important question because different meanings of the word can certainly alter the outcome from the practice that we take.

Let me explain in more detail the different types of consistent when it comes to trading.

1. The consistent method approach: This is an approach whereby the trader tries to apply a carbon copy type approach to their trading where every single trade is placed based on a set of rules. This style of trading stems from the understanding that trading is a probability based business and we can’t control the market but we can control our actions within it.

2. The consistently inconsistent approach: This is where the trader tries trading a certain method then gives it a month then moves to the next strategy. They have planned it like this “I will give it a month and if it does not work I will move on”. They are consistent in their approach and move on often.

3. The consistent solo pilot:  These types as their name suggests would rather fly alone.  They do not like to ask for help but would rather learn from the Internet, YouTube and various other free trading applications and/or resources. You can ask these solo seekers how they are doing with their trading and they respond positively, still not wanting to seek guidance, still hoping for their own holy grail via a Google search.

4. The consistently learning approach: Always on a course or several courses, these people tell themselves they are not looking for the holy grail yet they keep searching for something. What are they searching for? Well they do not tend to know and that is why they keep attending on courses.

Now we all know that there are many more types of consistent out there. I wanted to highlight the most common I come across on a daily basis so that anyone who is out there and who is still struggling can realise that consistency is the key, then they can also start to understand what it means to be consistent. Anyone can be consistent; I mean I was consistently losing money for 18 months when I started. But it is the people that work out what sort of consistency is required of them to gain an edge and then they see some truly great results over time.

Just so that you are all aware I was all four of the above cases. I have crossed off three of those and now I focus on Number One, which is the consistent approach to my trading, and it has served me over the years. The fact is if you wish to have consistent results you need a stable consistent approach and that word “stable” or “structured” is that which is lacking from most. How do you go about achieving stability and structure in your trading? Well that will differ for everyone but from my experience and the traders that I hold in high regard, we have all spent time working with someone who is already doing what we were setting out to achieve. Working with someone that is already successful in their chosen field is pretty much what we all do to learn. Think about it, why is there such high competition to intern at Goldman Sachs or JP Morgan? The reason is that these “kids” coming out of university all want to be working with the best so that they too can become the best. In trading you need not go to Goldman Sachs to achieve success but you had better find the mentor or guide that will help you otherwise the road can be very long and one that you may never get off.

If you want to trade well then go and do it, you are the only person stopping you. If we can help then we would be happy to. It is your call so make the right one.

By Craig Cobb

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