There are several essential elements to consistent profit in stock market investment.
One is of course to have a robust System (like CUE trading system; for example) - and one's mental alignment with the way the system invests.
Once that is achieved, discipline is key.
That I remember every day in my live trading.
Yesterday, 22nd December, while watching India market, I entered some Long Term Stock Buy position (as shared in Long Term Investment Ideas forum - this forum is open to subscribers only ...).
Being an active trader, I do take Short Term trades while taking Long Term positions at same time (mostly, on different instruments).
On 22nd Dec, I had taken a Short Term / Day Trade Bearish position on Nifty (India Market Index) using Put Options. I had put the Stop on the Nifty Put at a pre-planned price level - using Sueprior Profit Fine Tune Chart pivot levels.
As it happened, the stop was hit. And I exited the trade. Following discipline. I was not "hoping" that Nifty will fall back down and holding on to the position. I cut my losses. And I am always happy when I follow the plan like that.
No sooner that I exited the trade at my stop level, Nifty reversed and started falling down. Giving me another shot at a very low risk Bearish trade - and I did not hesitate to reenter the Bearish position - again using Nifty Put options.
And this time, Nifty fell sharply - and that allowed me to recover the last trade loss and get an additional handsome profit. I exited the full position by end of day (in view of the fact that the Nifty Put will be expiring soon by end of Decemer).
Below chart explains this disciplined way of investing.
Many investors ask me the secret of successful investing. These two trades explain the secret.
Being ready to take small losses. And not being queasy about re-entering a position immediately after being stopped out - provided the system (for me, CUE system) gives the signal to do so.
Does your system help you invest and trade in such an easy and unambiguous manner? And how is your discipline in following the system you follow? Does your system have clear set of rules as we have in CUE system?
If the answer to the above is affirmative, based on my experience, you are on the way to consistent profit. No reason not to achive that !
Citizen of Main Street.