The Myth of the Rigid Trader
In the world of trading, consistency is often hailed as the holy grail. We’re told to stay disciplined, follow a plan, and remain unwavering in the face of market turbulence. While these are sound principles, the idea that consistency means rigidity is a myth. In reality, the best traders are those who marry discipline with adaptability—a lesson echoed by James Clear when he said:
“In theory, consistency is about being disciplined, determined, and unwavering. In practice, consistency is about being adaptable.”
Let’s unravel why adaptability is not just a side dish to trading success but the main course.
Why Trading Consistency Needs Flexibility
The Reality of Daily Challenges
Life throws curveballs—some days you’re full of energy, while on others, even booting up your trading software feels like a marathon. Does this mean you let the day slip by? Absolutely not. The secret lies in scaling your trading activities to match your circumstances.
For example:
- Low on Time? Focus on reviewing critical trades only.
- Feeling Mentally Drained? Use pre-set alerts to guide decisions instead of manual monitoring.
Adaptability allows you to maintain your trading rhythm without feeling overwhelmed or falling into decision fatigue.
Avoiding the Trap of Perfectionism
Rigid traders often fall into the trap of trying to execute their plans perfectly, which can lead to analysis paralysis or frustration when things don’t align. Here’s a truth bomb: the markets don’t care about your ideal conditions. By embracing flexibility, you reduce stress and keep moving forward, even if it’s just a small step on a difficult day.
Building a Framework for Adaptable Consistency
Create a Flexible Portfolio of Systems
Trading systems are your lighthouse in the chaos, but your trading plan should account for variability:
- Review trading system performance regularly to ensure your systems are stable and performing as expected.
- Have rules for switching poor performing systems off and reallocating capital to protect yourself from market behaviour shifts.
- Have a variety of trading systems that perform in a variety of market conditions.
For instance, instead of obsessing over one single system, focus on a portfolio of systems that you allocate capital between and monitor closely, as discussed in the Trader Success System.
Leverage Technology
Automation tools can be a trader’s best friend when energy or focus wanes. Tools like the Smart Stock Automation Engine take the heavy lifting out of execution, ensuring you’re still trading effectively without burning out.
The Role of Psychology in Adaptable Trading
The Emotional Tug-of-War
Fear of missing out (FOMO), regret, and doubt are common culprits that derail traders. These emotions often thrive in environments of rigidity—when you feel you must trade a certain way or achieve a specific outcome.
To counter this, traders need a mental toolkit:
- Practice self-compassion on low-energy days. Showing up, even minimally, is a win.
- Use mindfulness techniques to observe emotions without acting on them. This is a focus of our TraderMind Performance Coaching.
The Confidence-Adaptability Loop
Confidence is built by showing up consistently, but consistency doesn’t mean trading full-throttle every day. It’s about knowing you can adjust without guilt. This adaptability reinforces confidence, creating a virtuous cycle where you trust yourself to handle any trading day, good or bad.
Real-World Examples of Adaptable Trading
One of the most common issues I see is traders berating themselves because they haven’t backtested that new system or they haven’t had time to review and optimize one of their systems or update their trading plan.
But sometimes life does not allow the time to do these extra things. In systematic trading, the bare minimum is running your systems to generate your buy and sell signals and placing your trades. The great news is that with systematic trading, this takes just a few minutes each day… which pretty much everyone can find.
Everything else is extra.
So rather than constantly berating yourself for not doing more, I like to help traders reframe this and acknowledge themselves for getting the core work done (checking signals and placing trades) and realise that everything else is extra and nice to have.
All the better if you automate your trading – the core work is taken care of for you!
Adrian Reid, founder of Enlightened Stock Trading, often speaks about the importance of balance in trading. His month-long trek in Nepal, leaving his systems on autopilot, is a prime example of adaptability in action.
Your Next Steps to Adaptable Success
- Assess Your Trading Plan: Are there areas where rigidity is holding you back? Look for ways to simplify or automate.
- Commit to Daily Check-Ins: Evaluate your energy and focus each morning. Adjust your trading activities accordingly.
- Invest in Education: Learn more about trading psychology and systematic trading to build confidence in your adaptability.
Adaptability Is the Way Forward
Consistency in trading is not about rigidly expecting yourself to do a whole raft of trading related work each day, it is about checking your signals and placing your trades every time. Beyond this we find time when we can to work on and improve our trading. It’s about showing up in the best way you can, given the circumstances. By adopting a mindset of adaptable consistency, you’ll reduce stress, increase your trading longevity, and ultimately achieve the financial freedom you seek.
Would you like to explore how to integrate adaptability into your trading routine? Let’s start that conversation in the comments below. Remember: the markets reward the prepared, not the perfect.
Your Coach
Stephanie