To be consistently profitable, I need to…

To move from profitable to consistently profitable is a more significant jump than it sounds.
How do we manage to do that?


Specialisation, focus and discipline are key.


We are trading the same market during the same session with the same strategy day after day.

Specialisation

Why the same market?

We get very familiar with its movement, size, and how it might react to specific news announcements.
Each market has a DNA—the subtle differences in structure and how it often changes from one form to another.
Knowing this movement—intimately—is necessary to be able to execute a setup successfully regularly.

Focus

Trading the same session day in day out helps us focus.
Day trading when you’re on it is intensive and exhausting.
We need to be on our game to win.
We can realistically maintain such intensity for limited periods.
A few hours a day.
So we use that to our advantage and dedicate ourselves to a single consistent trading session each day.
The graph below—provided by Nick—shows the volume for the Pound/Yen. UK time (UTC+1).
The graph shows the highest volume period is from pre-New York open and for the following few hours. We trade that session.

Discipline

Sticking to a tried and tested setup is, ironically, one of the most challenging things for a trader to achieve.
It is for me!
And is, I conclude, why I’ve been good but not consistently profitable.
The best setups are often not crystal clear.
Therefore, by design, each entry needs to follow a clear set of rules.
But at the same time, each setup is unique in detail.
I need to ignore off-script early and late entry opportunities.
Unlike algorithms, our minds see patterns everywhere.
Algorithms, however, make instant binary decisions needing only the smallest of price movements. Way too quickly for us. Minimum size also dictated by spread and commission costs.

Our edge

Our edge is reading the algorithmic price movements of risk and reward within a contextual market structure. And when these movements get to an appropriate size, we join in with proper context and price action criteria.
How will I make this necessity for discipline a strength?
I take every trade with James. I’m the snipper—and he’s the watcher.
That combination (militarily anyway) has always worked better.