Developing a consistent trading strategy is the number one way to increase your wealth. Whether you are an independent Forex trader or in other senses are seeking to make profit from your trading activity; a consistent Forex strategy is you major key to success. In order to keep your trading activity consistent there are several factors to consider.
In order to be consistent from the beginning on-wards you need the exact means to do so. First step on the way is therefore to develop your well functioning trading strategy. The majority of your trading strategy must of course include how you define entry and exit into the market. Either you are facilitating fundamental- or technical market analysis, you should combine this with risk- and money management. To top this up, apply your own discipline. Creating your own Forex trading strategy should be an ongoing process until you are satisfied with the performance it achieves.
Are you satisfied with the performance of your Forex trading strategy? Then time is in to implement it. Putting your trading into actions implies applying your discipline as well. It means that it is essential to stay true to your way of trading. It is the change between your market activity on “paper format” and entering it into a real price feed. Your success relies on your ability to perform exactly as your plan is telling you. This might be the point where algorithmic trading can be introduced. However, computer technology is performing only what is instructed to do. It is essential to use your discipline.
Are you planning to demonstrate consistence for your trading strategy? If so, first thing is to be confident in the performance of your strategy in itself. The level of your consistence should be a reflection of your real performance. Furthermore, what is the goal of your trading activity? What is your expectations and what do you want to achieve from it? Once your goal is ready and defined you can also set the level of consistence. The key to demonstrate consistence in trading is to set your goal lower than the real possible performance of your strategy. Regardless if you have a daily, weekly or monthly goal, the second key is to STOP your market activity once it is reached. Among your usual trading skills, your trading discipline will come in the high seat of your performance.
As suggested above, your applied discipline in trading is imperative to achieve a consistent performance. Again we are back to the fact where your applied market knowledge is only half of the work. Use your discipline wisely on your way to success.
Tore Herbert Hoff has almost a decade with experience from trading in the Forex spot market. He has used most of his career to develop trading strategies. As a result, the current Forex trading strategies has proven to be both profitable and highly consistent.
Tore Herbert Hoff is currently the Chief Investment Officer in Liongate Capital AG. The major objective is to implement his strategies in financial products offered to the professional market.