Consistency should not be the goal. Consistency should be the result.

Consistency should not be the goal. Consistency should be the result.

| Rich Clifford | Blog
  • I have never really been successful because I lack consistency.
  • I have many years of experience but I’m still missing consistency.
  • Looking for a consistency way of generating return fr share market. (sic)
  • 15+ years – finally got some consistency.
  • I’ve only been doing this for 7/8 years now I have moderate to great success currently but lack the consistency and some of the knowledge.
  • Have not developed any strategies with great level of consistency.
Consistency. If the emails we receive were translated into word clouds, consistency would be one of the largest words on display. 

But what is it?
Basically, consistency as a result means showing or seeing the same result over and over and over again with only slight variations. A low standard deviation… if you will. 

Consistency in trading means continuously generating a profit or continuously generating a result. Consistency is a great goal. It sounds like a low stress, stable way to grow an account. It’s also a myth. It’s a unicorn...it doesn't make any sense.

Pareto principle
Trading for results is much more closely related to the Pareto Principle. The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of causes (the “vital few”). OR
  • 80% of revenue comes from 20% of your clients.
  • 80% of workers do 20% of the work.
  • 80% of your returns come from 20% of your trades.
Seeking consistency is a major reason why traders take losses. A lack of consistency is not the problem. The pursuit of consistency is. Consistency should not be the goal. Consistency should be the result… The result of following a consistent system with rules and definitive actions. Consistency is the method and the reward… not the objective.