Here are 8 trading articles that will help you become a more consistent trader with fewer big drops in capital and steadier profits.
Consistency will take you a long way in trading, yet it’s elusive. It’s elusive because most people don’t develop consistency in how they approach the markets. Many traders are trying something new every day…and this “tinkering” approach hasn’t produced a single consistent trader I know of…unless they eventually settle down and start doing the same things every day, over and over again.
No consistency in approach/method/routine = no consistency in results.
These articles focus on building consistency, whether it is through routine or psychology.
A trading plan is your roadmap to success because it lays out how YOU will approach the markets no matter what happens. Here is a transcript of a radio interview I did: The Trading Plan – What You Need to Know. Maybe you have built a trading plan before, but if you are still struggling it may be time to revisit that plan and make sure it’s being followed. Some of the articles below may help you in this regard.
5 Step Plan For Trading Success – No matter what market you trade, it doesn’t matter how much you learn or know if you can’t implement the information effectively. This article takes a deeper look at how you should be learning and practicing so you actually improve. Accumulating knowledge isn’t enough.
Best Way to Practice Day Trading and Gain Consistency – Day trading requires study and a lot of practice to get good at it. A Market Replay Simulator lets you download historical days and then trade them as if they were live. Similar to a demo account, Market Replay Simulators let you practice with no risk, but with the added benefit of practicing as much as you want, even on weekends.
Where to Place a Stop Loss When Trading – Managing losses and keeping them small is key to consistency. Always set a stop loss order when day or swing trading. While we form expectations and make trading decisions based on what we believe will happen using our tested method, the fact is, at any moment price can do anything. Not having a stop loss in place leaves us susceptible to a very large loss.
Reducing the Risk of Catastrophic Trading Losses – Stop losses are good, and should be used, but they aren’t always effective at preventing massive losses. Even with a stop loss you can lose way more than you expect. See why and how you may be risking more than you think. See real-world examples where loads of traders got annihilated. Then, see how to reduce the chances of it happening to you.
How and Why Day Traders Should Use a Daily Stop Loss – In addition to controlling risk on individual trades, also use a daily stop loss. Just as a day trader shouldn’t let one single trade ruin their day, professionals also don’t want one single day to ruin their week or month. Cap how much you lose each day. Here’s how.
5 Step Daily Trading Routine for Success – A great guest post by George of TRADEPROAcademy where he discusses his daily trading routine. Routines build consistency. If you don’t have a daily trading routine, create one now.