The Forex market is in a constant state of flux. Its liquidity is the very thing that helps Forex traders turn profits when they get it right. It may be difficult to consider that in such a volatile market, consistency is the key to successful trading. How can you remain consistent when the market appears to do the unexpected on a daily basis? The fact is that all the indicators in the world will not tell you what the market will do. As a result, new traders should be wary of becoming frustrated with what they believe the market should do.
The first lesson any Forex trader should learn is that this unpredictable market is impossible to forecast for the majority of the time. Any consistencies, trends or indicators you spot are simply patterns that increase the probability of you trading successfully on the Forex market and do not guarantee the direction the market will take. Consequently, you should expect consistency from your trading strategy not from the market itself.
The key is to focus on consistency not profits and to go into the Forex trading market with realistic expectations. Patience is another necessity when learning how to trade Forex. Opportunities arise every day but that does not mean you should act on every single one. Focus on your trade plan and the opportunities you feel are most favourable and manageable for the time and experience you have.
Your trading plan should be consistent. If you trade to your plan consistently, you are more likely to learn how to progress as well as avoid your emotions influencing your decision. A string of losing trades may have nothing to do with the profitability or effectiveness of your trading strategy.
You should stick with your trading strategy through good and bad times. Each trade is independent from the last. Just because you have had a string of winning trades does not mean your next trade will follow suit. Control the risk and only trade when signals align. A consistent approach to price is important too. Indicators can tell you about what has happened before and together may allude to future movements, but the price must be your sole focus.
Become consistent in all aspects of your trading plan, only trading when probabilities are clearly on your side. Whether through thorough testing, record keeping or monitoring, your trade decisions should always be made to your satisfaction whether they end in profit or loss.