How to be a Consistent Profitable Trader?

When you walk upto a Trader and ask what is that one thing you want to accomplish out of trading?

Besides the love for trading and markets, All you here from most of the traders is to make insanely huge amount of money, In fact now a days they put it as "making more money than God!"

But in order to achieve the massive task there is only one thing that a trader should focus on.

And that is to be a consistent profitable trader!

Have you ever wondered why you are not able to replicate the same consistency that you generated previously or on a constant basis?

Whether you thought about it or not, I am haunted by this question again and again on how to be a consistent profitable trader?

After giving a thought to it and discussing with other traders. I understood, Ideally these are the Six steps.

1. Find your trading style :

Everyone around me emphasizes on importance of identifying your trading style but I was unable to understand my own trading style.

But last week when I was ordering food from Zomato, there was an ad stating predict the winner of today's IPL match to win 30 % discount.

Now am not following cricket yet for the love of discount, I chose to bet on RCB despite being aware of its under performance with a strong team. And as you could all possibly guess RCB lost hands down.

Now either I was placing a foolish trade or I prefer taking contrarian trades. So I decided to work on my contrarian trading style with optimal risk management and test it out!

The idea could look vague but what I am trying to emphasis on is taking real life situations and applying is the only way to test and know your style.

2. Develop your trading plan

After repeated failures I realized there is nothing such as being good at impromptu trading. Even if it exists it might not work for a longer period of time.

Creating a trading plan is just like planning your day. Unless and until you have planned activities, your mind wanders here and there.

As a result, You just end up by doing random unimportant things and at the end of the day feel the day has passed so quickly without doing anything.

3. Following the trading plan

Creating a plan and following it religiously is just like the sky and sea which appear to meet.

The problem I experienced while following the trading plan are your own emotions.

No wonder how well you plan it, you might not take the trade when you have to because emotions does have the power to manipulate your mind and guide you not to take decisions based on your plan.

But eliminating the emotions and acting with a probability mindset is the only way to play the game.

Also following your plan, that's how you build your discipline.

Also if it's a well thought in advance detailed plan assuming if/else condition then your edge of executing is at a faster pace because you have anticipated the action to be taken for the unknown variable too.

4. Scaling up your trading size

When you want to make it big in either trading or any business the only way that I know of is through scaling up.

Let us assume a restaurant business which is generating decent profits.

Now how can you grow it to 10x, 100x only by expanding its business operations and opening multiple branches of it.

Just like that even in trading, you got to constantly learn and adopt newer products to trade and scale up your trading size as per your performance.

5. Listen to your mentor

Dan Lok says,"when you want to learn from him there are 3 rules that you need to follow"

1. No Excuses

2. No Opinions

3. No Victim mindset

Going by his saying, I feel a mentor can guide you become a better trader by holding your hand not to make you walk but in order to see to it that you don't fall in the traps that are present in trading.

6. Dreamer to a Doer

Imagine you come across a beautiful girl with whom you fall in love at first sight. Now, you have two options either gather some courage and go talk to her or be fearful and keep dreaming about her.

Just like that even in trading when you find an opportunity you got to pull the trigger keeping in mind you risk/reward rather than imagine how many ticks you are going to make from that trade or be fearful in taking the trade or busy fighting your emotions.

A trader is an action taker, if he doesn't take the opportunity, then it skips right in front of his eyes. Hence he got to be a doer or need to transform from a dreamer to a doer

Implementing these basic things appear to be easy but it isn’t. You got to work on each one of them to master and get to a stage where you are able to trade effortlessly.

P.S : Apart from these what are the other things that you think are necessary to be a consistent profitable trader? Comment below.