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Are You a Disciplined Forex Trader?
Written by: PaxForex analytics dept - Saturday, 21 January 2017 0 comments
Discipline is an integral part of becoming a consistently profitable trader. However, most aspiring forex traders find themselves unable to remain disciplined as they trade the markets. Forex trading obviously requires a high degree of discipline, most all traders know this, whether beginner or pro. However, knowing is different from doing and while most all traders know they should be more disciplined, it often ends up being something they think they can put off until they make X amount of money.
Successful traders are not only happily self-employed, they are also relentlessly, religiously self-disciplined. One simply cannot succeed in trading without discipline. In order to be consistently profitable, you must have strict rules of operation in regard to your trading, and you must consistently (i.e., all the time) follow them. This fact cannot be stressed too much. Nearly every lapse in trading discipline will cost you money. And the goal here is to make money, not lose it.
In forex trading, discipline means following your trading system rules strictly and precisely. Over 95% of forex traders lose, not because they do not have a good trading system or they have not learned the techniques. They lose because they fail to follow their trading system rules. They lose because they have no discipline. When
you ask them about the techniques, indicators and systems they use, they explain very well, but when you ask them about their trading performance and whether they are profitable or not, you will see that they are not profitable yet.
Follow your strategy, follow your trading rules, especially risk managementand money management rules and you will be virtually printing money in your account. Forget your strategy and you will be virtually throwing money out the window. The best traders, the most successful traders, have a set trading strategy and strict trading rules, and they abide by them all the time not just half of the time or sometimes. If you practice good trading discipline on only four out of five trades, that fifth trade is guaranteed to absolutely kill your equity.
To be a disciplined trader you should feel sure that you have a successful forex trading plan and your trading system works properly. Don’t look for any trader you want to follow to, because you will not understand the reasons of trading decisions that he or she makes, and sooner or later you will lose your confidence. It’s better to search an approved trading system that you can be sure of. Successful forex trading is a trading according your plan and in a quiet mood. In other words your trading discipline is a key to the success.