The Elements of Consistent Trader

There are few elements that are crucial for a successful trader. If you have problems in some area of these elements, you will probably fail as a successful trader. You cannot compensate some other element by enhancing some other area. The elements that will dictate your success as a trader are:

• Trading Strategy
• Execution of Strategy
• Trading psychology

You can see the framework in the picture below. These elements are directly crucial for you success but also they are depending from each other. For example the trading strategy affects on the success of execution and the clarity of the execution will affect on your trading psychology.

Trading Strategy

Trading strategy is the first step in becoming a consistent trader. You have to have an edge in the market you are trading. Also the trading plan has to incorporate detailed rules when to take a trade and get out of position. Learn more about trading strategy in the strategy page.

Trading Psychology

Fear and greed are well known psychological factors that affect on your trading. However you can mitigate the effects of these mental blocks by building a well defined trading strategy and by doing mental rehearsals. Learn more about trading psychology in the trading psychology page.

Execution of strategy

Strategy execution is closely related to trading strategy and trading psychology. Without well planned trading plan, you do not have exact rules for trading in different market situations. And if you have some mental blocks like fear, you will probably hesitate at the moment when you should take a position or get out of a position. Learn more about execution in the strategy execution page.