Why Consistency In Trading Is Important (Long-Term Success)

My previous post on how I screw up by second-guessing my strategies made me change my trading habits (for the better). I have taken two actions for my day trading:

• After the open, I make sure my Excel program is running (I enter positions completely automatically). Then I go outside to walk my dog or simply have a cup of coffee. After 30 mins I return and have a second look.
• After 2 hours of trading, I close all my positions.

Results have improved and it also feels a lot better. This is much more relaxing. To look at P/L through the day is detrimental to both consistency and health, at least for me. It’s extremely hard to detach from money.

It does not matter when I close my positions.

Just being consistent is the most important thing!

If I close at 1300 NY time, at 1500, or at the close – it does not matter. Simply being consistent is what matters.

The reason is that I tend to hold positions on bad days (hoping for it to turn around) but close positions early on good days, where the P/L gets better as the day moves on.

FAQ:

– How does consistency play a significant role in day trading success?

Consistency is essential in day trading because it ensures adherence to the trading strategy and helps make decisions based on predefined rules rather than emotions, leading to improved results and reduced stress.

– Why take a break after the market opens for automated trading?

Taking a break after the market opens allows traders to detach from the screen and reduce emotional attachment to money, leading to better trading decisions.

– Why close all positions after two hours of trading?

Closing all positions after two hours of trading is part of maintaining consistency and ensuring adherence to the trading strategy. It minimizes impulsive decisions based on daily P/L fluctuations.