Confidence Creates Circle of Consistency

The ultimate goal of Forex traders is to be consistent in the application of our trading plan and FX Strategy. Only then are we able to measure OUR performance and the strategy’s performance.

Let me ask you 2 simple questions:

• Question: If we break the rules of our strategy, is that really the strategy’s fault?
  Answer: No, it’s the trader’s problem.
• Question: If we follow the rules of our strategy but still have not positive equity curves during the last few months, is that our fault?
  Answer: No, it’s the strategy’s fault.

Do you see our point?

Following a strategy and trading plan with consistency is the ONLY way to retrieve this VALUABLE information and it’s the best way of putting a MIRROR in front of our trading performance!

We need 2 important components to achieve this consistency.

CONFIDENCE #1: STRATEGY

Confidence #1 is the strategy you choose. You must be able to trust the trading plan regardless what the market does or how it behaves.

It is vital that you have complete trust in your chosen strategy, because otherwise you will certainly attempt to bend the rules before, during and after the trade.

The key aspect is to choose a strategy that matches your psychology – discover a good “match” prior to commitment!

When your psychology does not connect well with your strategy, then the odds of you breaking the strategy rules and your trading plan are endlessly higher than when your psychology does match your strategy.

CONFIDENCE #2: YOURSELF

Once you have a strategy and trading plan (road map) that matches your psychology and instills sufficient confidence, it is time to work on the next step: sustaining confidence in yourself!

The road map is only part of the story, the next episode is YOU.

The own inner voice will try to derail you, create fear and cause panic. Staying on the path of your road map and not allowing yourself to be derailed is the 2^nd phase of trading success.

Many reasons could be at fault for your own hesitation to follow the trading plan. Our fear of losing or being incorrect is often the strongest of reasons. One simple truth: you will never be a profitable trader if you want to win each and every trade no matter what…

Last but not least, you need to have faith in both your strategy and yourself. That means:

1. Not bending the rules to justify an early or late entry;
2. Not blaming the strategy for 1 loss (or even a couple);
3. Checking if you really properly implemented the strategy.

CONCLUSIONS

There are several key messages:

• Having confidence in your strategy and yourself is one thing, but implementing the rules of the trading plan consistently and learning from it day in day out is the true challenge.
• Once you make a habit of consistency, more confidence will follow which in effect will reinforce this desired behavior.
• You have now created a positive enforcement circle that will make it easier to continue. Confidence leads to consistency, consistency leads to confidence.

Thanks all for tuning in… don’t forget to join our webinars next week!

We have 1 live trading webinar and 1 Forex quant webinar.