You may have heard of Rajinikanth.
He is an actor from Tamil Nadu, well known across India. He has held the title “Superstar” for 30+ years in the Tamil movie industry.
No one else in Tamil Nadu comes close to his level of success. He has acted in 150+ movies, most of which are blockbusters. He has a huge worldwide fan base. Whenever his films are released, they’re celebrated worldwide like a festival.
He moved from Bengaluru to Tamil Nadu to act in movies, and he came from a not-so-rich background. He worked as a bus conductor early in his career.
So what made someone like this dominate the movie industry for five decades?
Was it hard work?
Was it luck?
Was it talent?
He might have had so many traits within him that led him to this height. But among them all, one thing stands out.
It’s called Consistency.
What Consistency did he maintain?
No matter which director he worked with, he showed up on time every day. The days he arrived late to the set can be counted on one hand. He maintained this level of dedication even after achieving tremendous success, and it kept him at the top for a long time.
In the early days of his acting career, he showed up on time.
In the middle stage of his career, he kept showing up on time.
Even now, in his seventies, he still shows up on time.
It goes without saying that if you or I want to succeed in trading or any field, we have to show up on time every day, consistently.
If yesterday was profitable, we have to show up today. If yesterday was a losing day, we have to show up today. Showing up means two things. We trade every day and put in the work: learning, reading, and understanding how this profession works.
That’s how a profitable trader thinks about the profession and maintains a sense of success.
If you are starting out in trading or struggling to become a profitable trader, remember you have to show up each day. But how can you show up daily when your trading results aren’t good?
When you look at your trading statements, you feel like crap. You feel demotivated and inferior, and you think about quitting.
Is there a way to come out of this struggling phase and to become a consistently profitable trader?
Yes, there is a way out. And it’s through understanding the stages a trader goes through.
Each stage teaches you something different. Knowing which stage you’re in tells you what to work on. A losing day then becomes part of that work, not a reason to quit.
This article explores the three stages a trader goes through as they work toward becoming consistently profitable.
Stage 1: Consistently Losing Money Trader
Stage 2: Consistently Break-Even Trader
Stage 3: Consistently Profitable Trader
Stage 1: Consistently Losing Money Trader
Everyone starts at this stage. It’s like you’ve just been born and are learning to crawl. And this stage goes like this.
You’re not clear about what to do, how to do it, and when to do it. You take trades based on gut feel, news, tips, and social media. Your trade entries and exits don’t have a plan.
You’re just going without any sense of direction, and you end up losing money consistently.
Tired of going this route, you face two choices.
Choice 1: I can’t take the losses anymore. I’m clueless. None of the strategies I’ve tried is working. It’s emotionally painful. I quit.
Choice 2: I understand that I’m taking this profession lightly and approaching it casually. It’s time for me to get serious about becoming a profitable trader.
Most people go with Choice 1. Few people select Choice 2. They know that if they can figure it out and become a profitable trader, the rewards are excellent.
Now, around this time, you go through many YouTube videos and books, and you keep learning about the various ways the trading world “really” functions.
Then you understand that the real problem is “You.”
It’s not the market.
It’s not the government.
It’s not the broker.
It’s not the snake oil vendors’ tips.
You understand that all you need is a profitable trading method and the ability to execute the plan in the market every time.
After spending a few months in this stage, you develop a method and deploy it in the market. This is when you enter the next stage: Consistently Break-Even Trader.
Stage 2: Consistently Break-Even Trader
In this next stage, you’re no longer losing money as you did in the first stage. But you’re not making money either.
You’ve got a method.
Now you know when to enter and when to exit.
Sometimes you miss a trade out of fear, especially if your last few trades were losers. Sometimes you book a profit too soon, even though your method tells you it’s not time to book.
You stay in this phase for a couple of months, and you realise the method isn’t what generates profit. It’s the person who trades the technique.
You can give anyone an extremely profitable method. Still, most people won’t be able to follow the rules and earn money.
Do you know why?
Because after a few consecutive losses, they doubt the method.
Their mind/ego gets in the way and convinces them to look for another “holy grail method.”
In truth, the problem is the mind itself.
That’s where you enter the psychology part of trading: understanding how your personality shapes and fine-tunes your trading method. That’s when you step into the stage of becoming a Consistently Profitable Trader.
Stage 3: Consistently Profitable Trader
You might think a Consistently Profitable Trader is someone who consistently earns money from trading.
And that’s true.
But one important factor comes into play here.
There is a big difference between a trader who uses a profitable method that doesn’t suit his personality and one who uses a profitable strategy that does.
And that’s the reason why many traders fail. They don’t spend time developing a trading method that suits their personality.
On the other hand, successful traders know they need to build a method they can execute day in and day out.
For instance, some traders are not interested in day trading because it requires fast action during live market hours. If they enter day trading, they won’t be able to do it, even if they have a profitable trading method. They are not a match for day trading.
Maybe this trader is very relaxed and takes plenty of time to make decisions. His strength might lie in swing trading, which means holding a position for a few days to a few weeks. Then, he has to fine-tune his trading rules to match swing trading.
Most traders’ real goal is to have a method or trading plan they are comfortable executing.
Once the trading method matches the trader’s personality, it becomes easy to execute trades consistently.
Remember, consistent profit is simply a by-product of consistently executing the trading rules (entry/exit). You can only execute the trading rules consistently when you are comfortable with them.
So you get the picture.
You have to learn a method that suits your mindset and personality, and then execute it. That’ll yield excellent long-term results.
All successful traders have adopted this formula, and they’ve won.
Summary
So what’s the one action you can do today?
Identify which stage you’re in now. And continue to show up consistently, every day, regardless of which stage you’re in.
Are you a consistently losing trader? Then show up daily.
Take the time to think about this profession seriously. Invest time in learning, reading books, and understanding what this profession is all about.
You need the mindset first: a professional mindset. You’re here to treat this as a business, and you commit yourself to it. That’s your first step.
Are you a consistently break-even trader? Then show up daily.
You must understand that the method isn’t why you aren’t earning good money. The reason is you, the person executing the rules. Take time to understand your mind, personality, strengths, and weaknesses, and find a trading method that matches you. Then deploy it in the market.
Are you a consistently profitable trader? Then show up daily.
Once you’ve found the profitable trading method that matches your personality, it’s simply a matter of showing up daily and executing those trades. You now understand that earning money is simply about executing the rules day in and day out.
You follow it seriously. And a decade later, you’ll be hailed as the “Trading Superstar” among your friends, in society, on trading forums, and on social media. Because, like Rajinikanth, you’re committed to showing up daily. On time. Every time.
