Consistency

Consistent trader is the one who takes wins and losses in his stride and keep moving forward.

Consistency does not mean all profit and no loss. It means that you ensure you gain more through your wins than you lose by your losses especially by way of cutting losses early.

Yes. Consistency means when over a period of time the frequency of profits is pretty good and losses too less. Consistency is hard to achieve but with consistent hard work and practice its not impossible.

The objective is to earn both in terms of money and knowledge in the overall game.

If one has the latter the former will come as well.

That's true! But I have always seen traders more active on the first part and not giving that due importance to knowledge, especially beginners.

That's because money is the end to all ends. If you disassociate knowledge with the prospect of making money through it, what are you left with? You cannot buy anything with knowledge. At most, knowledge maybe rewarding in some psychological sense. It's no surprise that there is a haste to make early profits especially here, in trading, which is an arena where whoever earns the most is the winner.

got some fine lines from your post with good information , thanks for your nice reply.

The main reason traders can't reach consistency is how they approach their trading and they often fail to see the mismatch between what they are doing and what they want.

True. Greed tends to completely ruin trader's plans.

consistency is the main key to success.in this market. If you want to make profit from this market, you need to be consistent.

I completely agree, but I would also add that reaching consistent results is a very difficult thing to do for the majority of traders. It's not something that happens overnight.

I think that "consistency" in reference to trading does not mean absolute success in all trades. I think it means successful trades interspersed with some losing trades.

I would offer a different view to many here.

For many new traders "consistency" means winning a high percentage of trades - say 70%, 80%.

This is unrealistic, if trading sensibly. For example it is easy to achieve 90% win rate on trades if you leave a TP 1 pip away and SL 500 pips away - but you'll be likely to lose money.

Most trading professionals (i.e. people who get paid to trade on behalf of banks or funds) will be winning on roughly half their trades. The reason they can do this and expect to be profitable on average is that they combine this with a risk:reward ratio of at least 1:2 when trading. For example if the SL is 50 pips below then the TP is approx 100 pips above.


Image source: https://getmrmarket.com/education/ri...nt-for-traders

However, there is an important concept of "consistency" in terms of your process. You should aim to be consistent in how you evaluate trading opportunities, how much risk you take on each trade, how you decide where to leave your TP and SL orders.

Having a consistent process is something to focus on but just be super clear it doesn't mean you'll consistently win on each trade. This is where a trade journal really comes into its own, imho.

Look at this...
with 20% win ratio you can have 15 losing trades in row with 98% probability with in 500 trades... and much more with lowest probability...

This is not a very meaningful post, I'm afraid.

The point it seeks to make is that there is a difference between theory and practice.

However, anyone with sufficient practice knows that a win/loss ratio greatly in excess of 50% (for non market-making strategies, which are inaccessible to retail traders) is unlikely, if you are trading in a way that considers risk-adjusted returns.

You can manufacture an artificially high win-loss ratio by:

1. Losing money e.g. leaving stops miles away and take profits right next to entry
2. Trading left-skew strategies (selling options, buying USDCHF before SNB depeg etc.)

But trading strategies used by professionals are judged on risk-adjusted measures like Sharpe and the reality is such strategies have a win/loss rate that is roughly 50/50. Money is made is because of asymmetric risk-reward setups, not because of directional predictive power.

And look at this graphs...



100 possible outcomes with RR 4-1 and 2% risk



100 possible outcomes with RR 4-1 - 0,1 % risk



100 possible outcomes with RR 1-1 - 2% risk

What kind conclusion comes form this... for me win ratio end positive expectancy plays key role in long therm... let your winner run and close your losing trades fast... old story yeah?

AND last one...



How you manage 40 loosers in a row???

you just have to control yourself, i have a hint for you, when you view your charts take a deep breath thrive, before thinking of taking a decision before you start analyzing your trades...... I hope this works for you.....

This is a good idea