In today’s episode, you’ll discover what it takes for you to become a consistently profitable trader.
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Hey hey, what's up my friend, so in today's episode I want to talk about what does it take to become a consistently profitable trader? Because here's the thing right, anybody can be a profitable trader. You could make you know 50 % in a given month. You could make $ 500 a day in a short run. Anybody any Tom, Dick Harry Sally Mary, can make money in the markets.

So another question is: what does it take to be a consistently profitable trader? Because there is a huge difference being a profitable trader and a consistently profitable trader so number one? You must have an itch in markets. So what do I mean by having an itch? Because she is sitting right even without an itch in a short run, you could actually be a profitable trader. For example, if you go down to the nearest casino, you know that the house - I always have an edge over the players. It is statistically proven right that a casino have the odds with them, but you can go down to a casino for a day a week.

You might actually come up net profitable, even though you're trading without a niche, and it's the same for trading. So if you want to be consistently profitable in the long run, then you must have a niche in the markets, just like the casino in the long run they make money because they have an edge over the players. So an agent is simply expectancy right. Give you a layman term right an example is, let's say you have a coin every time it comes up here, you make $ 2 every time it comes up till you lose $ 1.

So clearly their coin toss right. You have an H in it coin, toss it gives you a positive expectancy. So that is what I mean by having an itch number two. You must know what consistency means.

So many traders right, you know me included when I first started in trading. I thought I know being a consistent trader. It means you know you could make money every day every week and I realized that debt. Is it the reality? There isn't a one-size-fits-all, because consistency depends on one very important factor, and that is your frequency of traits.

How often can you trade within that specific period of time? Again? Let me give you an example: let's say that same coin toss alright, every time it comes up, we hit you make two dollars every time it comes up till you lose a dollar. Let's say you can only toss that coin once day. Now, let me ask you: what are the odds of you making money every single day from the coin toss? I'm sure you agree that some days you'll make money some days, you'll lose money, but in the long run you will make money. But when we are talking about consistency making money every day from the coin toss, you agree that you won't make money every day, because you can only toss the coin once per day.

But what? If you can now toss that coin? A thousand times a day? Now? What are the odds of you making money every single day? No, I'm sure you can see that the dynamics have shifted now the odds of you making money every single day. If you can toss that coin, a thousand times a day is dramatically higher. I think you could make money on almost every day. I would say a hundred percent, one 99.9999 % right.
You will make money on most days. So can you see the difference that you might have similar expectancy for your trading system, but your frequency of traits is what determines how consistent you will be as a trader, so you've got to manage the expectations. So if you're a trader that picks you know, one trader did and clearly you don't expect to make money every day. If you are triggered that picks.

You know one trait a week, then clearly you need even more time right for your age to player. So a very rough general guideline is this: if you can take a hundred traits - let's say we know within a month, then generally you can make money on most months if you can take hundred traits right assuming the idea for each in the markets, assuming that your Trading system has a positive expectancy. If you can take a hundred traits, let's say within every six months, then generally every six months right, you will make money and again, if you can take hundred traits, let's say every year generally on most years, you will make money. Okay, so manage your expectations right, consistency is not what you think.

Moving on number three being a consistently profitable trader is also about handling your drawdown right. Here's the thing right, no trading strategy, no trading system no whatsoever are there works all the time. Why is that? Because the market changes all the time, the market is not static, it goes up, it goes down, it goes into arrange a low-volatility environment, etc, and this means right there, whatever trading system that you are using, it will have winning periods and losing periods, no doubt about It so the key here is: how do you handle the losing periods? How do you handle your drawdown, so this largely depends on your trading methodology for systems trader. What you can do is you can use the filter right to know when to stay in the markets and when to stay out of the markets.

For example, let's say you, trade stocks and you know you usually make money in a bull market in a bear market. You don't make money so how you gon na actually handle the drawdown. Is that maybe he, let's see if the market is in a bear market in a recession you stay out of your trading. You stop trading the system.

It's one way for discretionary trader, maybe you're a price action trader. How do you handle the drawdown? Well, one way is to understand how the market conditions have changed, and how can you adapt your trading strategy accordingly? Let's say you know previously, you are making money. You know, buying uptrend non market has changed right. You seem to be losing money whenever you're buying the dips.

Maybe you may have to pause, reassess and consider you're selling into rallies. Maybe the market condition have shift to a downtrend. So that's where this questionary trader could adjust their trading methodology. So this is how you handle your drawdown right and what you know consistent traders they would, you know, definitely be prepared for and finally number four consistently profitable trader.
They understand and they embrace that anything can happen in the markets. Any professional traders will agree with that statement. It's only new traders are who are cocksure, that of the earth trading opportunity of their trade setup and that's when you go all-in and when you go all-in and when something doesn't happen, the way you expect it. That's where you lose everything and more so, consistently profitable trader.

They know anything can happen, no matter how good a trading setup looks, no matter how good the pattern looks, how accurate the system is. They know that there's always a possibility of them losing money. There's always a possibility of them, you know losing more than intended. That's why they always respect markets.

They have proper risk management because anything can happen in the markets. Okay. So with that saying right, I was saying these are four critical things right on what it takes to become a consistently profitable trader number one having a niche number two right, knowing what consistency means number three able to handle drawdown and number four. Knowing that anything can happen in the markets, so that's it.

I've come towards the end of today's episode and I will talk to you soon. You.

By Stock Chat

where the coffee is hot and so is the chat

32 thoughts on “What does it take to become a consistently profitable trader?”
  1. Avataaar/Circle Created with python_avatars Kent says:

    fo me consistency means..
    consistently taking action, following your plan, not affected by the wins/losses, doing the work/task, journaling the ideas/spreadsheet, executing the plan without hesitation/fear, managing the risk and trades, not focusing on making money, having good energy to wait fo the set-up. overall consistently not losing your momentum on the market and not breaking any rules.

  2. Avataaar/Circle Created with python_avatars Anawo Victor says:

    Success only come to those who worked hard, Mr.Dennis @dennis__forex09 att instagram was able to guide me through forex/binary options trading and making Huge profits weekly, You could also be successful as me,.

  3. Avataaar/Circle Created with python_avatars Skye says:

    Off subject…..what did u eat to loose weight?!

  4. Avataaar/Circle Created with python_avatars Gancang Larosa says:

    Hello…
    I am so happy and smile when find your channel. Your education is so good.

    Could I ask a request?

    1. Could you make video, how to trade DAILY TIME FRAME, in 3 market situation and what indicators that works in :
    1. Trending trading system
    2. Sideway trading system
    3. Counter Trend/Reversal trading system
    Because, based on my point of view, Market move in 3 situation above.

    2. How do you think about trading in all pairs (28 pairs) simultaneous? Based on our trading system (indicators show to us). Is it good, profitable and safe?

  5. Avataaar/Circle Created with python_avatars Cleona Sibanda says:

    How do you use the filter to know not to enter the market

  6. Avataaar/Circle Created with python_avatars Aj Dominguez says:

    Love the videos, if you can make this or even a quick store on this Tips for beginners when they first start off and how to plan out their strategy and what is the best strategy. Please and thank you

  7. Avataaar/Circle Created with python_avatars Mark Vincent Cenita says:

    Heyhey keep it up ma frin,thank u for your inputs here

  8. Avataaar/Circle Created with python_avatars Anthony Dansby-Brown says:

    Your lessons are gold I have tried learning from a few sources and yours are by far the most clear I have encountered… THANK YOU

  9. Avataaar/Circle Created with python_avatars silvio anibal says:

    youre amazing amigo. i learn so much from your videos

  10. Avataaar/Circle Created with python_avatars Vijay K says:

    Hi Rayner this video was uploaded last year too…looks like you have uploaded again? Because I strongly remember watching this already.

  11. Avataaar/Circle Created with python_avatars Deborah Adrian says:

    I took the advice to get a professional trader who understood the fundamentals and trends in trading. You can make steady profits having an expert handle your trades because trading without experience or little knowledge can keep you in loss each time you carry out trade. Be guided I recommend you trade with David Haggard, an expert trader who has proven to bring out best results with his strategies and years of experience from trading. Everyone needs to profit in trading so contact him on mail(superpaytrading@gmailcom) and stoploss

  12. Avataaar/Circle Created with python_avatars Insiderify says:

    YOU ARE MAKING GREAT VIDEOS FOR US… THANK YOU FOR SHARING YOUR KNOWLEDGE WITH US.

    YOU ARE GREAT..

  13. Avataaar/Circle Created with python_avatars Andy MacLeod says:

    Great advice from an experienced trader. Very valuable and taken on board!

  14. Avataaar/Circle Created with python_avatars Dop Smash says:

    Does technical Analysis(candlestick patterns,chart patterns,support and resistance,Moving averages,indicators etc) works same for stocks trading and forex trading?

  15. Avataaar/Circle Created with python_avatars Bob Giarda says:

    Awesome teaching Rayner! We all need that edge, lots of consistency , been able to manage draw downs and to know that anything can happen in the market. 👏👏👏

  16. Avataaar/Circle Created with python_avatars Dhananjay Kumawat says:

    Hey can you give us some tips or a full gothrough on ELIIT WAVE COUNT

  17. Avataaar/Circle Created with python_avatars Dadsan says:

    I am beginner. Plz help me to become a profitable trader.. thanks rayner teo

  18. Avataaar/Circle Created with python_avatars Anthony V. Gibby says:

    Hey Reyner, I'm new to the channel and learning to day trade. Could you expound on step #1 "Have an Edge". What do you to have an edge? I don't quite understand what system/process I could follow have this Edge. Or, do I go about developing my own edge.

  19. Avataaar/Circle Created with python_avatars TheHutch000 says:

    Hey Hey ! Great advice – Always respect the markets and never ever go all in ! Tomorrow is another day 🙂

  20. Avataaar/Circle Created with python_avatars Morty Jr says:

    Great video Rayner! Your videos are by far the best on YouTube!

  21. Avataaar/Circle Created with python_avatars tarak M says:

    Another set of practical advice for amateur trader like me. Thanks.

  22. Avataaar/Circle Created with python_avatars Deepak Kumar says:

    The main thing is that we could understand your voice that is clear not like others soosooaooa

  23. Avataaar/Circle Created with python_avatars Md. khademul Islam says:

    It's true. You presented the market facts nicely.👍

  24. Avataaar/Circle Created with python_avatars swarup manipur says:

    Hey2 rayner … love and thanks from manipur , india .. hope 1 day we will meet

  25. Avataaar/Circle Created with python_avatars Kenneth L says:

    Hey! Rayner, I have been watching your videos for awhile now. I have only found one video on exiting trades, would you make a video about take profit in the recent future? =D

  26. Avataaar/Circle Created with python_avatars Just Erick says:

    You have taught me so much about trading markets , thank you !

  27. Avataaar/Circle Created with python_avatars Alonzo Brown says:

    I instantly click like when I hear Rayner say.. hey hey what's up my friend..!!?? 😃

  28. Avataaar/Circle Created with python_avatars Terryray123 says:

    My friend got me into Robinhood I told him I said. What's the difference between a fisherman a person who likes to fish? A fisherman is a person that consistently put fish on a table a man likes to fish goes out there for the fun of it. You gotta know how it changed and environment. I still have along way to go.

  29. Avataaar/Circle Created with python_avatars Johnny says:

    Having problems with PTE webpage – doesn't load.

  30. Avataaar/Circle Created with python_avatars itsmontez.com says:

    I'm new here but been watching you for the past month or so .. i love that you are constant with your uploads and hive knowledge with out strings attached

  31. Avataaar/Circle Created with python_avatars Kiên Chí says:

    Hey hey Rayner!! Keep up the good work, i like your videos so much!!

  32. Avataaar/Circle Created with python_avatars Ronald Trades says:

    Algun trader latino por allí ven a chequear mi canal!

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