Consistency
A word about consistency by this I mean the absolute necessity to take every signal and trade every day
Day consistency
Take 2 traders A and B both trading the same system….. this system
Trader A will trade 5 days a week trader B will trade 3 days a week.. The results for the week are as follows
2 losing days 3 winning days
Trader A has made a profit Trader B has made a loss as the 3 days he chose to trade he unfortunately captures the 2 losing days.
Signal consistency
Now break this down in signals trader A and B again
Trader A takes all signal and makes a profit trader B has a different mind set and does the following
Signal 1 wins
Signal 2 loses - he didn’t like that
Signal 3 loses – trader B decides to stopas the market ‘looks’ a bad market to trade
Signal 4 wins and this win makes several point – trader B kicks the cat and makes a descion to take the next signal
Signal 5 loses – trader B has now had 4 trades with only 1 win. - He decides to call it a day and quits, after all he is clever and limiting his losses
Signal 6 to 10 win and the day ends – he didn’t take them and stares at the screen in disbelief
Results
Trader A has had 10 signals with 7 winners a strike rate of 70% and makes a good profit
Trader B, same day same system took 4 signals with 1 winner and a strike rate of 25% and he loses miserably on the day.
If you decided to trade mechanically you must consol yourself to trade every day and take every signal.
Don’t try and kid yourself you know what a good market looks like..ok its true some period during the day can be rough but are you good enough to call it ?
I know Im not
A word about consistency by this I mean the absolute necessity to take every signal and trade every day
Day consistency
Take 2 traders A and B both trading the same system….. this system
Trader A will trade 5 days a week trader B will trade 3 days a week.. The results for the week are as follows
2 losing days 3 winning days
Trader A has made a profit Trader B has made a loss as the 3 days he chose to trade he unfortunately captures the 2 losing days.
Signal consistency
Now break this down in signals trader A and B again
Trader A takes all signal and makes a profit trader B has a different mind set and does the following
Signal 1 wins
Signal 2 loses - he didn’t like that
Signal 3 loses – trader B decides to stopas the market ‘looks’ a bad market to trade
Signal 4 wins and this win makes several point – trader B kicks the cat and makes a descion to take the next signal
Signal 5 loses – trader B has now had 4 trades with only 1 win. - He decides to call it a day and quits, after all he is clever and limiting his losses
Signal 6 to 10 win and the day ends – he didn’t take them and stares at the screen in disbelief
Results
Trader A has had 10 signals with 7 winners a strike rate of 70% and makes a good profit
Trader B, same day same system took 4 signals with 1 winner and a strike rate of 25% and he loses miserably on the day.
If you decided to trade mechanically you must consol yourself to trade every day and take every signal.
Don’t try and kid yourself you know what a good market looks like..ok its true some period during the day can be rough but are you good enough to call it ?
I know Im not