Consistency is Key to Your Forex Success
In this video:
00:35 – The Brexit Decision playing out right now
01:20 – Consistency is the key to your Forex success
01:50 – I post Daily trades at the same time every day
02:30 – What times do you trade? What charts do you look at – they all need consistency
03:03 – Do you change your risk?
03:53 – Don’t revenge trade
04:16 – Consistency as a trader and as a person
04:55 – Exit positions prior to Brexit as it’s going to be a choppy ride
Consistency is key to becoming a good forex trader. Let's discuss that and more right now.
Hello Forex Traders, Andrew Mitchem here, The Forex Trading Coach. Today is Friday, the 24th of June, and in this video and podcast, I want to discuss a very, very important aspect of what makes a person a good forex trader.
The Brexit Decision playing out right now
Just before that, I also want to let you know that today is the Brexit vote decision day, and right behind me on the charts now, the pounds gone from being very, very strong, to all of a sudden it's just crashed and in fact pound yen has already crashed 1,300 pips so far today, and the new day's only 3 hours old. That says some of the early votes have come in out of the UK.
I would think that looking at the longer term charts, the remaining vote is likely to remain … UK is likely to remain within Europe. That's what the chart's telling me on longer term, but of course, anything could happen. By the time you watch this video, or listen to this podcast, you will know the result out of the UK.
Consistency is the key to your Forex success
Back to the topic for today, which is all about consistency. As a trader, of course it's important that you have a strategy, a good strategy, one that works, one that suits you. Of course money management is important as well. Of course controlling your emotions is an important part as well. Consistency in how you trade is also a very, very important part of becoming a good trader.
I post Daily trades at the same time every day
What I mean by that is just think of a few things, for example, every day for the past almost 7 years now, between 5:00 and 5:30 pm Eastern Standard Time (EST), that's New York time, I've posted on my membership site the trades that I'm looking into taking to my clients, specific analysis. It's there every single day of the trading week. It doesn't matter whether I'm at home, I'm traveling, I'm flying, I'm overseas, everyday between 5-5:30, I have that consistency of looking at the daily charts and posting for my clients.
Every Friday for almost probably 4 or 5 years now, I've made these videos and podcasts. That's consistency.
What times do you trade? What charts do you look at – they all need consistency
Consistency within your trading is no different. If you have consistency, then things work out well. You need to have consistency in the times that you trade, the time of days that you trade, the pairs that you like to look at, the time frame charts you like to look at, the technical set-ups, or if you're a fundamental trader, the set-ups that you're looking for.
That type of consistency, when a trade is open, are you consistent with the way you manage a trade? Are you consistent with the position size you take, or the risk that you take?
Do you change your risk?
That type of consistency is a very under … I suppose it's a part of trading that people don't think about enough. It's not thought that it's that important, but it really, really is important.
A mand of people that come to me and they go, they'll go “Andrew, my trading's going really well, but all of a sudden this 1 trade wiped out all of these good trades.” Well, that's not consistent is it, because something's gone wrong, whether it's position size, you've suddenly doubled up in your position size. I have people write to me and say, “This 1 bad trade wiped out a whole big chunk of my account,” and then they tell me they didn't put a stop-loss in, but all their other trades, they have a stop-loss in, but for some reason they weren't consistent. They didn't put a stop-loss in, and of course that's the trade that goes wrong. People add to positions when normally they don't add to positions. Again, that happens to be the trade that goes wrong.
Don’t revenge trade
People have revenge trading. “I suddenly took this trade, it was a perfect trade, and it went against me,” so now they'll then go and trade the other way, or people do some crazy, crazy things and it all comes back to consistency. Of course controlling your emotions, your fear, your greed, all that type of important things come into trading as well.
Consistency as a trader and as a person
Consistency within your trading, consistency as a person is really, really important.
How many times do you go and look at something that you've done silly in your trading and you realize that those bad trades have only occurred because you've broken your rules. It wasn't the type of set-up that you're looking for. You did something silly in terms of you added too big of a position size, or you closed the trade way too early for some emotional reactionary reason, not because your plan was to close then.
All of those things come back to consistency. Consistency is the key to becoming a good forex trader.
That's it for this weeks' video and podcast. Hope you've enjoyed that session. Take some key points out of that.
Exit positions prior to Brexit as it’s going to be a choppy ride
If you are trading right now with Brexit going on, I'd suggest get out of your trades. I just think it's too risky to be trading right now with this news going on. It's only like 1 or 2 days of the entire year not to trade. Start again next week, once all the news had settled down, and we have a decision whether Britain is staying or not.
Have a great weekend. I look forward to talking to you this time next week.