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.