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In this webinar, we discussed the importance of consistency in one’s trading process. There are several facets to trading which this applies – analysis, trade execution, risk management, and handling various situations such as a drawdown (and run-ups), headline risk, etc.
As we talk about often in this webinar series, having a game-plan is paramount and the first step to achieving consistency. It’s imperative that there are rules in place to follow in order to achieve consistent results.
What your methodology for identifying opportunities is, is less important than the consistent application of it. There are a 1000 ways to make money in trading, but if one isn’t viewing the market through the same lens on a regular basis or executing trades in the same fashion over and over – results will be all over the place.
As far as risk management is concerned, consistency in risk taken and position sizing is paramount. Trading is about probabilities. If the capital at risk varies too greatly from one trade or another, then you will diminish the impact of your trading edge significantly and have unfavorable results.
We discussed these facets to trading and others, as well as provided methods for helping one stay the course in being consistent. To listen to the full discussion, please see the video above…
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—Written by Paul Robinson, Market Analyst
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