The Flip Flopper, Strategy Hopper, Embraces The Power of Consistency

The Flip Flopper, Strategy Hopper, Embraces The Power of Consistency

Everyone dislikes a flip-flopper. There’s always that one friend who says they want to hang out but never shows face. America is full of entrepreneurs with one foot in and one foot out though they want to become millionaires by their mid-twenties. My point is, if you live a life of inconsistency and have surrounding peers who are all unstable, how do you expect to find consistency in your life, let alone in the financial market?

From a trader and investor’s perspective, the lack of research, focus, and commitment will drive you to leave great strategies that need more time to follow your unruly emotions resulting in poor decision-making.

My mental toughness and discipline have been most challenged during my trading journey. It is easy to say, “Don’t fall into FOMO,” “Stick to your rules,” or “Manage risks.” Still, the human mind naturally seeks validation, excitement and wants to engage in something promising or profitable. This innate desire for instant gratification and the fear of being left behind can override our rational thinking, leading us to deviate from our carefully laid out strategies and take unnecessary risks.

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A great book to consider to help with focus is ‘Trading In The Zone,’ by Mark Douglass.

I am a busy entrepreneur, so audiobooks always are best for me. If you are a hardcover reader, well, lucky for us, Amazon has everything.

When To Change Strategies?

Knowing when to change your strategy can be critical for traders seeking to improve performance or adapt to evolving market conditions.

An adjustment may be needed if you have…

• Consistent losses or a prolonged period of underperformance compared to your historical results.

• If your strategy consistently fails to meet your goals or align with current market trends.

• If changes in market dynamics, such as increased volatility, shifts in correlations, or significant economic events, may necessitate adapting your strategy to better suit the new environment.

A trader that flips between strategies is NOT considered ‘bad’ as you need to be adaptable. This should speak to the hearts of individuals who believe a bulletproof system exists. No plan is perfect, and there will be losses. It’s important not to run at the first site of danger as this can cause traders to overcorrect and take more significant losses.

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To help with this transition, if you are new to options trading, download our FREE ‘Learn The Basics of Options Trading’ ebook.

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The Transition

Transitioning from being inconsistent to consistent requires a structured and disciplined approach. You need...

• A well-defined trading plan that outlines entry and exit strategies, risk management methods, and specific trade selection criteria. This should be developed through market analysis, incorporating technical and fundamental factors.

• To develop a patient and emotionally resilient mindset. This is essential when avoiding impulsive decisions driven by fear or greed.

With commitment, discipline, and continuous improvement, the journey from an inconsistent trader to a consistent one becomes achievable.

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Please share and comment below with any feedback if this reading was informational and provided some help as you continue your finance journey. For more readings like this or to join our newsletter, visit https://simplifywallstreet.com