To the following question to a group of traders:
Is there a system that allows beat the market on a regular basis? , The most skeptical reponderÃan with a resounding NO and the most naive barely flinching would say yes … and perhaps the best answer is not either.
How?
It is well known that trading is a business of sum 0, which is to say that what some lose what others gain, which would seem reasonable to conclude that it is not possible to beat the market on a regular basis, however statistics are a small group, about 5%, which if successful.
So, one must ask whether this group of elected has found the Holy Grail of trading. The answer, with nuances, would be yes, because we can not explain his success as a matter of chance.
And then if someone has found is it possible to find him?
The answer is again yes.
And everything could be summed up in one word: consistency, so easy to express and so hard to find.
CONSISTENCY (in capital letters), understood in its broadest sense, encompassing each and every one of the activities to be developed by traders and resulting in their personal and professional growth and ultimately show your most sought – face with an increasing curve P / L (profit / loss).
More specifically, the consistency of dedication, effort, study, risk management in applying the system and test your advantage, reporting or journaling and analysis operations performed, setting goals, flexibility to adapt to market conditions …
Are we consistent in trading?
As an exercise we can thresh this question in response to each of the above with the following questions:
- Is our constant dedication, fair ycomprometida or only partial, when we can and as a hobby?
- Do we think that with a combination of indicators and rules will give us the winning trades or we work hard to understand market behavior and still not always be rewarded?
- Do we make our own assessment and study and we hope to sing operations?
- Have we checked and studied the advantage of our system and applied without exception in all cases where the precise conditions exist?
- Do we recorded in a document all the operations we do, our ideas and findings, how we feel when we operate ?, read, analyze and draw lessons from what has been written, a posteriori?
- Do we set goals for improvement in operational, in managing emotions, eliminating errors in the acquisition of skills …?
Here are some more or less representative questions to assess the level of consistency in trading and perhaps a starting point to reach it.