Since Wednesday was PI day (3.14), I thought I might update my PI trade article, says Dave Landry, f...
Why Is Consistency So Elusive?
01/16/2015 6:00 am EST
Andrew Menaker, PhD, of AndrewMenaker.com, highlights two of the most common dilemmas traders often face; rhythm and consistency. He discusses how they are intertwined and offers suggestions on how to help manage a trade and increase consistency.
"I wish I could be more consistent." In addition to the word discipline, consistency is one of the more common words heard in trading psychology.
Consistent performance is elusive for the majority of traders. Some traders tend to blame the market; other traders blame themselves.
We know the market is anything but consistent. It goes up one day, down the next; some days have big ranges, some days small. Risk-on days, risk-off days, regime changes, etc. Experienced traders know the market has its own rhythm.
And so do you. We all have our own rhythms.
When you understand where you are in your personal rhythm, that awareness can inform you and help you manage how you trade, increasing your consistency.
One way to track both the market's rhythm and your rhythm is by journaling. Include not just your observations and trades, but also your thoughts and feelings about your trading. Do it every day you trade. And then re-read it on a regular basis. Most traders don't journal and the ones that do don't always read what they wrote.
By Andrew Menaker, PhD, AndrewMenaker.com
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