Free Class
Forex

Rick Wright
Instructor

Hello traders! At the time of this writing I am teaching in beautiful Atlanta, Georgia. On the Tuesday of class, I went to dinner with a former student who wanted to talk about his (perceived) lack of consistency in his trading.

During our conversation, this student, let’s call him Steve, complained that he wasn’t where he wanted to be in his trading. When we talk about consistency in our trading, many different traders refer to different things. Let’s break this down a bit. Many traders complain about a lack of consistency in their profits, meaning how much money they make on a daily or weekly basis. As a day and swing trader, I can certainly attest to the fact that earning a steady paycheck day in and day out can be difficult! Many new traders believe that they will come to the market and earn themselves a consistent \$100, \$500, or \$1,000 a day. While earning an average of those numbers is definitely attainable, earning a fixed number every day is actually difficult. You will have some losing days, some days where you make just a handful of pips, and occasionally those days where you can seem to do no wrong! Money seems to be raining on you from the market! Those are the days that can really cloud your thinking on what your true abilities are. If you make \$10 on Monday, \$50 on Tuesday, \$0 on Wednesday, lose \$30 on Thursday, and make \$1,000 on Friday, don’t go shopping for a new Maserati on Saturday! If you’ve done any reading on statistics and other math stuff, you need more inputs than just five days to truly find out how profitable your are in trading. After a couple months of active trading you should have a relevant sample size. After 60 trading days, if your average income is \$100 per day, you could “expect” to make that on a consistent basis. When asked, I recommend traders use an average of their last six months of income to determine what they can afford to go shopping for. \$100 a day is probably not enough to go Maserati shopping, but \$1,000 a day? Hmmm…