Consistent Trading Is The Secret To Forex Success! Here’s Why

Last Updated October 21st 2019
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Let’s cut straight to the chase; if you do not have a consistent forex trading plan, you will lose money and eventually fail as a forex trader.

You will not make your millions on one single trade. In reality, you will only be successful with a long series of profitable and consistent trades.

So, quit thinking you’re going to get lucky.

In this article, we’re going to look at why forex traders need to be consistent and how they can achieve this.

Want to learn how to trade forex like a pro? Take our forex trading course!

 

How learning to trade forex consistently can make you more successful

“It’s not what we do once in a while that shapes our lives. It’s what we do consistently.”

That’s a quote from Tony Robbins and it holds a lot of truth when it comes to forex trading. Winning a trade every so often will not shape you as a forex trader, trading consistently will.

Being a successful forex trader takes dedication and consistently sticking to a trading plan that works for you.

Don’t expect to follow someone else’s rules or strategy and hope it will work. Every trader is different.

By developing a consistent trading plan, forex traders can learn to avoid overtrading and under trading.

Overtrading is a big problem among traders and often leads them to make big losses. Professional traders trade less, not more.

Surviving the forex market is more important than making more money.

Under trading is also a problem because if you trade too little or not at all, you will not make anything either.

Consistent trading can also help you trade only when you are uncertain of market conditions. Avoid trading when the market is too volatile for your trading plan to be implemented.

To be a consistent forex trader, you need to learn to be strict with yourself

If you have a trading plan, you must ruthlessly follow it. Do not get excited when the market starts moving unexpectedly in your favour. This can be risky as you are in uncharted territory.

You should also keep your trading plan simple. The easier it is to repeat the better. The more elements to your plan, the more likely there will be errors which can become losses.

 

Learning to be a consistent trader takes time

start consistent trading

As a beginner, you need to learn what will work for you. Once you have found what works for you, you can begin trading consistently.

This is true for both swing traders and day traders. If you do not have a trading strategy or defined trading style yet, you are putting your capital at risk.

The first thing you need to ask yourself is: Are you someone who always needs to feel like they are making a profit or someone willing to wait for a big pay off?

If you need to see the money coming in, you may want to try day trading. If your more patient, swing trading may be for you.

Whatever trader you are, analysis of the markets always comes first. Trade only after you have some kind of understanding of what way the market is likely to move.

Do not perform a trading plan based on how you feel. You need the analysis to back up what you are about to do.

Consistent trading also means trading at the right time. For some, this may mean trading at certain points in the day when certain events are taking place or have already passed.

One key event many forex traders look to take advantage of is the London-Tokyo market overlap and the New York-London overlap.

This is when markets are open in London and Tokyo at the same time and then later in the day New York and London are open at the same time. 

These are great moments to trade because the market is more active, which gives traders more moments to enter and exit a trade.

You also have to find the analytical style that suits you; are you a fundamental trader or a technical trader?

 

Understand the concept of probability

Consistent trading is all about estimating the probability of the success of your trades and striving to keep the result as similar as possible.

Forex trading is not like gambling; the aspect of probability separates the two.

With gambling, you do not know what the outcome will be. With forex trading, you can work out the probability of the outcomes of your trades

Understanding probability is highly useful to forex traders.

 

How to become a consistent forex trader

become a consistent forex trader

The first thing a consistent trading plan needs is a good risk management plan. Many amateur traders miss out on this and it costs them dearly.

Only when you have a risk management plan in place can you trade consistently.

For every trade, you should know how much you are willing to lose. Many of the top traders advocate not risking more than 1% to 2% of your trading account on any trade

For example, if you have $100, don’t risk more than $1 or $2 on any trade

This way your trading account will last a lot longer and you will be able to test out more strategies and potentially make more money.

A vital thing to remember about consistent trading is that it is largely about surviving.

 

Have a growth plan

As you become more successful and your profits start piling up, you need to find a way to keep it coming.

You would have compounded your trading account and have more money to risk. That 1% or 2% you risked before would be larger.

You need to be careful when scaling up your trading plan to ensure that it remains largely consistent.

Set yourself goals and targets that are achievable.

 

Keep a trading journal

The best way to become a consistent forex trader is by keeping a trading journal.

In your trading journal, you should be doing the following:

  • When you entered a trade? Time and price down to the pips.
  • Why you entered a trade? Did you see a particular pattern or conduct analysis?
  • Where did you place your stop loss? Was it required? If so, how accurate was it?
  • How long you stayed in the trade? Did you stay as long as intended?
  • Why you exited the trade? Did you reach your target?
  • Was the trade successful? What was the result? How you could improve the strategy?

 

But keeping a journal is not enough, you also need to review what you have noted and look for areas of improvement.

When reviewing your trades, look to cut areas that are causing bad trades and look to strengthen areas that work. This way you can find your trading edge.

Over time, you will be able to put together a consistent trading strategy

Depending on how frequently you trade and how effectively you review your trades, the time it takes you to become a consistent trader will differ.

 

Repeat this cycle

Follow this simple routine when perfecting your trading strategy:

  • Put together a trading plan;
  • Test your trading plan;
  • Record the result;
  • Review the result;
  • Repeat.

 

Lifestyle and mental state

trading psychology

Trading psychology is also a major factor. Having a consistent mentality towards trading is highly important. 

If you do not have a clear and focused mindset when trading forex, it will be hard to be a consistent trader.

You can do this by keeping track of your mood and learning to observe it. Work out what affects your mood, especially before you start trading.

If you sense that you are not focused or with a mindset for trading, it may be best to skip trading altogether.

A negative mood can harm your trading consistency. Similarly, being too positive can make you make bad trades too.

If you are too successful, this can be when you are at your most dangerous. Too much success can lead you to make bad trading decisions or skipping vital components to your plan.

Your lifestyle also matters. If you do not have a set routine before you trade, it can negatively affect how successful you are.

Traders such as Andrew Aziz suggest waking up early going for a run, having breakfast, a shower and be ready before the market opens. Other traders also advise things such as meditation.

If, for example, you were up late the night before, didn’t get much sleep and skip breakfast before trading forex, you need to accept that you might not be in the best shape to implement your trading strategy and trade consistently.

Your personal life should also be in order.

Stress from your personal life can directly harm how you trade too. Not only can it drag your mood down, but it can also be a major distraction.

 

Key points

If you remember anything from this article make it these key points.

  • If you do not learn to be consistent, you will not succeed as a trader. Consistency is the key to success in forex trading.
  • Risk only 1% to 2% of your trading account on every trade. This way your trading account will last a lot longer.
  • Keep track of all your trades. This is the only way you can see what works and what doesn’t.
  • Your personal life and daily routine affect how you trade. Getting them in order will put you in the right mindset to trade consistently.

Learn how to trade forex consistently with our forex trading course

Want to learn more about forex and how to trade? Then sign up to our forex trading course!

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