Achieving Long-Term Consistency in Trading

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In the game of trading and investing, the goal is not to make once-off huge bets and have large swings in your portfolio based on your luck.

The ultimate goal is to achieve consistent returns over the long-run.

And to achieve this consistency, traders will not only need to have a good trading plan, but will also need to master the psychological and mental aspect to be able to execute the plan flawlessly over and over again.

Your mind is your greatest asset, and also your greatest enemy.

Hence, you can think of consistency as a state of mind, where despite the outcome of any trade (win or lose), and despite your current mental state, you can continue to perform and execute your plan in a consistent manner.

Consistency = Repeatability
Repeatability = Scalability
Scalability = $$$

If you want to make it big, and trade a large trading account, you first need to master trading a small account.

If you can consistently trade a small account, it means you can repeat the results and performance onto a larger account.

So this will allow you to scale up, and trade a larger account.

If you try to scale up without consistency, then you will see large swings in the capital of your trading account, and it is only a matter of time before you blow the account.

So how can one master trading psychology and achieve the ideal mental state?

 

Complete Guide To Investing And Trading Psychology Cover

If you would like to learn more about trading psychology, also check out: “The Complete Guide to Investing & Trading Psychology”



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