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)
- What is Trade With Profile – Best Trader Training Program?
- Top 3 Reasons Why Traders Fail at Such a High Rate (~90%)
- What is a Trading Mindset Journal – Why You Truly Need One
- How to Properly Track Your Trades to Figure Out What Works
- There Are No “Naturals” – Great Traders Aren’t Born, They’re Made