Consistency is synonymous for forex success
Trading Reversal Bars - Price Action Trading System
Consistency is the key to forex success:
When starting down the path to learn about forex trading, we often hear that we need to be consistent in our approach to the markets. What exactly does this mean and how do we achieve consistency in the forex market? Consistent trading profits are a result of consistent actions. There is no room for emotional reactions while trading the forex market; however, there is a need for flexibility. Consistency is the product of a mindset that consciously manages a person’s emotions while interacting with the market. So exactly how can a forex trader develop a consistent approach to the market while not eliminating flexibility from their trading plan?
The only true way you can ever develop consistency in the forex market is by first finding your edge. A market edge is a method of trading in the forex market that gives you a positive ratio of winners to losers over time. You need to have confidence in your edge because not every trade is a winner; you must be able to endure a series of losing trades in order to see your profitable edge play out over time. As you gain confidence in your trading method you can then start to develop some rules around it that give you a little more rigidity in your trading plan, this allows you to remain calm and follow your rules no matter what comes your way in the markets.
Once you have developed your own rule based system off your market edge you will be well on your way to consistency in the forex market. This takes time. Contrary to what some people think forex trading is not a get rich quick scheme; it can easily become a get poor quick scheme however. At best it is a get rich slowly scheme, and only through consistency will you be able to achieve your long-term goals in the market.
As discussed above, flexibility is an important part of any trading plan. While developing a rule based system is crucial to your long-term consistency, building in some flexibility to your trading plan is also important. The forex market is extremely volatile at times and no two moments in the market are ever exactly the same. This is why you need to be flexible in your approach to trading the forex market. I know it seems contradictory to be emphasizing the need for a rule based trading system to develop consistency and at the same time emphasizing flexibility. Consistency and flexibility are must have components of forex trading success however, part of the reason why so few ever achieve that success.
Our approach to the market needs to be consistent and flexible, thus we need a trading method that gives us a flexible yet consistent view of the market. Forex Price action analysis is the only method I have come across that is inherently flexible yet at the same time can offer you concrete strategies to develop a system around. Price action is simple and effective and will greatly help you in developing the flexible yet consistent approach that forex trading success requires.