I was sitting across from an ambitious new trader in Troy, NY (yes you read that correctly Troy, NY) enjoying the Brown’s Pale Ale discussing ways to be more consistent as a trader. Now most of these conversations are started by traders who were never profitable. But not this one. This one was with a new trader who had mid-six figure success and yet had not quite become consistent.

There were a few six figure days of losses.
There was new doubt creeping into his trading of whether he would make it after these rips.
There was trading capital left that was starting to get thinner an uncomfortable.
There was a concern of trading in isolation.
There was no formal mentoring just an entrepreneurial gent trying to figure trading out on his own. (And apparently more successfully than 99 percent of all who try.)
There was the real determination.
There was a twenty-something with superior focus across from me.
There was a young man who had the processing power/talent to trade actively.

This trader had most of the answers and mostly I just listened.

So how can we become more consistent as traders? After some research and digging into my own experience I made a list:

1) Visualize yourself trading consistently. (Dr. Steenbarger)
2) Set realistic goals for your trading. (Charles Kirk of The Kirk Report)
3) Do not spread yourself too thin. (Jackie Lee)
4) Prepare consistently. (SMBU)
5) Keep a live trading journal. (Kirk Report again)
6) Develop clear exit rules for your trades. (The Money Show)
7) Always know how much you are willing to lose on a trade. (Galen Woods)
8) Develop a trading PlayBook of your best setups and trade those plays. (Bella, The PlayBook)
9) Keep trading statistics of what you trade well. Verify your best trade setups with statistics. (Evernote, SMBU Performance Center, Tradervue are excellent tools.)
10) Wait for a fat pitch (trade). (Warren Buffet)

After leaving the local pub after our chat I couldn’t help but think…..he’s going to make it.  He just needs to understand what he does well better.  And after that I expect him to be picking up the beers consistently.

Mike Bellafiore is the Co-Founder of SMB Capital and SMBU, which provides trading education in stocks, options, forex and futures. Bella is the author of One Good Trade and The PlayBook. He welcomes your trading questions at [email protected].

*No relevant positions