The Master Formula For Achieving Consistent Trading Profits/Success:
Most people who pursue trading can only tolerate the learning/training process for a short, fixed period of time. They go through a 3-hour technical analysis course and expect enormous profits like clockwork – as if that knowledge will automatically equate to success.
But basic information/knowledge barely scratches the surface of what’s required to become a consistently profitable trader. Certain core trading concepts and frameworks are extremely strong/dependable/evergreen, but everything else is subject to change.
So when it comes to specific trading setups/strategies/systems, there are no permanent truths. Everything both works and doesn’t work some of the time. There are no certainties – only probabilities (and those probabilities can shift based on conditions/context).
So in order to become an elite-level trader (doing more of what actually works and less of what doesn’t), it’s all about analysis and adaptation. It’s an iterative process of optimization – small, incremental steps over time. The learning process never really ends.
In other words – if you want to be a legitimate trader – you have to be a lifelong student. There is no masterclass that will automatically turn you into a multi-millionaire trader. It takes time to build new habits/skills and put all the right pieces together.
Even for highly-profitable, experienced traders, there is no final destination to reach – only the journey of continuous improvement.
Success Formula → Knowledge + Action + Feedback + New Action = Evolution
The secret to long-lasting trading success is to treat your entire process like an endless science experiment. Everyone (especially as a beginner) dreams of finding some fixed, holy-grail system that will generate massive profits for all eternity. But it’s a fairytale.
That’s just not how markets work. Markets are complex, ever-evolving systems that require adaptation/flexibility. So if you think there’s some magical mathematical formula out there that can produce automatic, never-ending profits, then enjoy a fruitless search.
Ceaselessly applying the success formula we’re discussing here (Knowledge + Action + Feedback + New Action = Evolution) is as close as it gets to “guaranteed” success. After enough iterations of this process, you can eventually reach a level of consistent profitability.
But since markets are dynamic (conditions can change, new things can happen that have never happened before, etc.), your individual approach will periodically require some maintenance. If you’re unable to appropriately evolve, markets will leave you in the dust.
Knowledge = Theory
Action = Experiment
Feedback = Data
The fact that no foolproof numerical formula that can produce nonstop trading profits exists might sound discouraging. But this creates opportunity for skilled, adaptable traders. Cookie-cutter price patterns and technical indicators simply aren’t sufficient.
You have to constantly be tracking and analyzing the feedback from your actions to make sure you remain in tune with the market.
The Wrap Up – “I’ll Try My Best!” Sounds Great, But What Does Your “Best” Really Mean?
When people pursue new endeavors like trading, they often say things like “I’ll try my best” – but saying something like this doesn’t really mean much. Because your “best” is dynamic – abilities can be lost or gained over time based on your habits.
As a beginner, your “best” might mean consistently losing money – which is perfectly normal for an uneducated, untrained trader. But with continuous study and practice, your future “best” can be far superior. Every day offers opportunities for improvement.
So in order to become a consistently profitable trader and continue to scale, you have to keep leveling-up and improving upon your “best” – and that’s exactly what The Success Formula is designed to do. It’s a never-ending raising of the bar one notch at a time.
When you repeatedly apply this formula to the 2 core components of trading throughout all 3 phases of the trading day, you put yourself in a position where reaching, maintaining, and building upon a solid level of consistent profitability is essentially inevitable.
In the end, trading can go one of two drastically different ways. It can be a psychological and financial nightmare if you let it. Or it can be the ultimate activity for psychological and financial growth. The choice is yours depending on how you approach it.
So make sure to leverage The Success Formula so that your path skews toward growth/gain as opposed to stagnation/loss.
Learn More in the Trading Success Framework Course
Written by Matt Thomas (@MattThomasTP)
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I fully agree that to become a successful trader, you have to be learning something new every day. There is no magic formula or product that will always work. Markets can go either up, or down, and there are so many factors that affect it, Trading is all based on probabilities.
The important thing is to learn from your mistakes, do not let emotions like greed or fear govern your decisions. Rather study what the great traders and investors do, and learn from them. Success doesn’t happen overnight, so be prepared to learn and study to build your knowledge base.
Is the Trading Success Framework Course that you mention, best for beginners? Or do you have other recommendations for beginners? Thank you.
Exactly. Trading isn’t about some magical indicator or system that will work flawlessly until the end of time. Markets are far too dynamic for that – they’re constantly evolving. So as a trader, you have to be able to evolve/adapt as well.
People love to fantasize about finding holy grail price patterns that will generate mountains of profits forever, but a good trading methodology is all about context. Basic, surface-level candlestick or chart patterns that you probably hear about all the time (like doji/hammer candlesticks and double tops/bottoms) are virtually meaningless on their own. What really matters is the context behind those patterns. Price is only one piece to the contextual puzzle – and it’s often quite deceiving. Elements like volume (via volume profile) and time (via market profile) are critical contextual components because they showcase where the most buying & selling is taking place and the strength/weakness of various price levels. Not all price levels are created equal, so the elements of volume and time show deeper, more meaningful structure/posture that many market participants don’t even realize exists. Overall, it’s important to have a framework to guide your analysis and behavior, but that framework can’t be too narrow/rigid. You have to be able to adapt based on the market-generated information being presented – and that’s really what The Success Formula is all about (continuously collecting information/data/feedback and effectively evolving).
For beginners, I highly recommend the Trading Success Framework course because it’s free and outlines what “being a trader” truly entails – the core values, qualities, concepts, principles, habits, and skills you have to understand and adopt for long-lasting, sustainable success. Far too many people dive into markets hoping for fast, easy riches – but that’s just not the reality of it. Large, consistent profits are possible – don’t get me wrong – but not without hard work and building the proper foundation. So I created the course to showcase the truth behind what trading is without the typical distortions you see from so-called trading gurus and all kinds of ridiculous advertising/marketing out there. For individuals who go through that course and then want to take their skill/experience/edge to the next level, that’s when I would suggest a high-quality training/mentorship program like Trade With Profile – The Profile Trading Development Pathway (with Josh Schuler) or Apteros Trading – NADRO Training (with Merritt Black). By going this route (my free course followed by a legitimate, top-notch training program), I’m convinced people wouldn’t need to worry about purchasing any other courses/programs – that’s all they would need to become consistently profitable. Unfortunately, my own path was extremely fragmented and twisted (and I wasted a lot more time and money than was necessary), but with the benefit of hindsight I can design a much cleaner/straightforward/expedited path: I would build my foundation with the Trading Success Framework course, take my skills and market understanding to the next level with Trade With Profile or Apteros Trading, and then pursue a trusted funded trader program like Topstep Futures. This is the exact approach I would take if I were a complete beginner starting over again from scratch (and I’m willing to bet that my path to consistent profitability would be 5-10X faster than it was).