Hey,
Today I want to address a critical question that affects most traders:
Why is discretionary trading a problem?
This is particularly important if your goal is to achieve consistent profits with your trading.
If consistent profitability is what you're after, discretionary trading is likely impeding your progress more than helping you get there—at least in any reasonable timeframe.
The Problem with Being a Variable
When you aim for consistent, reliable production from your trading, you want the confidence that your approach will generate more winners than losers. But here's the fundamental issue:
As a discretionary trader, YOU become a variable in your trading process.
Trading already operates in a dynamic environment with countless variables working against you. Adding yourself as another variable creates an unnecessary obstacle to consistency.
Why Consistency is So Hard with Discretionary Trading
When traders come to me for coaching, I ask them to share their current trading approach. Often, I discover they're discretionary traders—making decisions by looking at charts and attempting to capitalize on whatever the market presents.
This approach lacks a clear, specific, and mechanical methodology. Instead, it relies heavily on interpretation, which is where the problems begin:
- If you've had a rough couple of days or are experiencing personal stress, you might interpret chart patterns with a pessimistic bias
- Conversely, when you're feeling great, you might view the same chart with excessive optimism
This emotional variability directly influences your decisions and actions—working against the consistency you're trying to achieve.The Path to Consistent Profitability
Until you've established a solid track record of success, you should focus on becoming a systematic, methodical trader working with a consistent process rather than discretionary judgment.
What does this mean in practice?
- Define and document your trading process so it delivers consistent results
- Test your methodology thoroughly before risking real capital
- Build your confidence and skill in executing your system exactly as designed
This approach enables you to enter the markets with a consistent process you can count on, with predictable expectations. Even the best system will fail if you can't execute it consistently—that's another variable that will hurt your results.
Simplicity Leads to Success
Keep things simple. Instead of being a discretionary trader who might do 50 different things in a month because the market presented various opportunities, become a systematic, methodical trader who:
- Follows a clear, repeatable process
- Executes with consistency
- Experiences less emotional turbulence
- Achieves reliable results
The ultimate goal is to approach the markets with confidence, experience fewer emotional swings, and consistently make money at month's end.
Ready to Transform Your Trading?
If you've been struggling to achieve consistent results despite months or years of effort, the problem might be your discretionary approach. Whether you lack a robust system or have trouble executing consistently, I understand what you're going through.
Join me for my new masterclass: “Maximize Your Profits in 2025”
In this comprehensive training, I'll show you:
- How to develop a methodical trading approach that eliminates emotional decision-making
- The exact framework I use to create consistent profitability
- Simple techniques to execute your trading plan with discipline
- How to avoid the common pitfalls that cause most traders to fail
CLICK HERE TO REGISTER FOR THE MASTERCLASS
This masterclass is specifically designed for serious traders who want to leave the emotional rollercoaster behind and build a sustainable, profitable trading business.
To your trading success
Cheers
Brian McAboy
Inside Out Trading
P.S. I also have free resources available at InsideOutTrading.com that can help you calm your emotions and develop the habits of successful traders.
