What is consistent profits?

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forefit

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So the goals of everyone on here is to make consistent profits.
However how do you define consistent profits?

Is someone who has 10 small losing trades and 1 really good trade someone making consistent profits? Is someone who has been running a hedge fund like Buffett with profits every year and then one year he has a loss, making consistent profits? Or should we be just less focused on the money and more focused on the percentages.

I don't think there is any clear answer here, I'm just interested in your opinions.
 
forefit said:
So the goals of everyone on here is to make consistent profits.
However how do you define consistent profits?

Is someone who has 10 small losing trades and 1 really good trade someone making consistent profits? Is someone who has been running a hedge fund like Buffett with profits every year and then one year he has a loss, making consistent profits? Or should we be just less focused on the money and more focused on the percentages.

I don't think there is any clear answer here, I'm just interested in your opinions.
Click to expand...

I only go for percentages..........You can run percentages into eternity............
 
When I have gone for dollar amounts then I have usually lost,,,,,,,but when I use Fibonacci targets then I am much more successful......
 
Consistent profits isn't usually worked out by the way you outlined, its all in the two words
'consistent profits' meaning you consistently earn money, instead of lose money...

Whether you are looking for 5 pips a time with 5 pip SL and going for 60/40 wins

Or doing 200 point stops, its all the same imo... just winning more than you lose
 
Why should the metrics here be any different than the metrics we use to evaluate a trading strategy for consistency?
 
I suppose you if you looked at the data of your trades and then skewed them to how it fits you could then claim to be making consistent profits. For example if you had some who had 1000 profitable trades and then 1 bad trade which blew their entire account, he could then claim he was a good trader if took out the extreme values when going through the statistics of his trades. But as mentioned it's a percentage game, I think it goes down to the individuals perception of what making consistent profits are.
 
Consistent profits for a trader are much easier to attain if you take profits at 4:1 when the chart is offering you 5:1. They are also much easier to attain when you exit positions for profits right before demand levels for shorts and supply levels for longs. One other side note on this trade that also helps me with consistency are limit orders. I circled them on the lower right portion of the chart for your review.
 
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jiggly said:
account equity increases over time; why complicate it?
Click to expand...

If some has a £1,000,000 in there account and they make £10 profit from trading in one year and then the next year they make say £15 profit from a £1,000,000 can they still be regarded as making consistent profit even though they are making such a tiny percentage?

I understand there is not black and white answer to this question I have posted I just kinda what get peoples opinion on the subject.
 
forefit said:
So the goals of everyone on here is to make consistent profits.
However how do you define consistent profits?
Click to expand...


The ideal would be 100% winning months.. with profits spread out evenly.. some people claim to be able to do that (typically the snake oil vendor scumbags will make such claims)

In reality most traders do have losing months, and profits tend to be lumpy.
 
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forefit said:
I understand there is not black and white answer to this question I have posted I just kinda what get peoples opinion on the subject.
Click to expand...

It cant get any more simpler.........
 

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forefit said:
So the goals of everyone on here is to make consistent profits.
However how do you define consistent profits?

Is someone who has 10 small losing trades and 1 really good trade someone making consistent profits? Is someone who has been running a hedge fund like Buffett with profits every year and then one year he has a loss, making consistent profits? Or should we be just less focused on the money and more focused on the percentages.

I don't think there is any clear answer here, I'm just interested in your opinions.
Click to expand...

If a methodology yields consistent results then consistent profits will come from a trader's ability to stick to the methodology.
 
jiggly said:
It cant get any more simpler.........
Click to expand...

Believe it or not I actually use a chart to plot my account and treat it like I would a share,there may be dips along the way but if the long term trend is up I am happy.:)
 
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