Lesson 10

Consistency Rules!

Stay Consistent in Your Trading Habits and Tactics

In intra-day and swing trading, consistency equals success. You can be consistent in losses, or you can be consistent in profits. The latter is a feat, the hardest thing to achieve, and it takes lots of hands-on practice. This is why I've evolved my training program to last for one full year. Considerable time is needed to master this intricate system.

Unfortunately, the hard way is the only way that works. You will learn from your own mistakes. My job is to help you minimize those errors, and to offer advice and strategies that will help you start profiting, sooner.

“How do I trade consistently?” you might ask. “I just sit at my trading desk all day, doing the same thing over and over, right?”

Actually, that's true. But it's not so easy to master. Here's how to not break your consistency.

Maintain a Highly Regimented Trading System

  • Trade the same stocks every day. Get to know your stocks the way you know your favorite songs—you know their rhythms and lyrics by heart. The longer you trade familiar stocks, the quicker you'll consistently profit.
  • Keep your share sizes consistent on each trade. If you're trading 100-share blocks all day long, do not start trading in 500+ share blocks in the final hour of trading or at any other time of the day. This break in your intra-day consistency will affect your trading psychology. When you begin to trade erratically and overexpose yourself, your emotions will quickly get out of control.
  • Keep your profits consistent on each trade. For instance, if you're comfortable with making $15 per trade when intra-day trading, then don't jump to swing trading until you're ready. The reason for this is that in swing trading you wait for a much larger $2 run for profit. This sounds great, but if you're not used to waiting for a $2 run, you will most likely break your consistency and sell your profits short because of extreme intra-day volatility.
  • Finally, keep your brain in check. If you've been trading with a clear mind for several weeks straight, then don't try to trade on a day when you're struggling with a cold or dealing with emotional issues. Don't trade if you're not clear-minded. It's okay to take a day or two off. It's better to be safely on the sidelines than to find yourself down $2,500+ on a day when your head isn't screwed on straight.

Hands down, consistency either makes or breaks a trade. This is true for all trading systems. My system requires exceptionally high applications of this tool. It has hundreds of rules and procedures that must be followed to the max. Any break in consistency can easily and quickly turn a great trade into your worst nightmare.

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