This video discusses about the main reasons why forex traders lose their discipline. One of the biggest challenges in forex is how to control your emotions and stick to your trading strategy. You need discipline to keep trading by your rules during any kind of market. Discipline is the single most important skill you must have in order to become a successful trader. Plenty of factors can lead you to lose discipline. If you took a couple of losses that might be enough to get second thoughts about your strategy. On a worst case scenario you give up on your strategy just before it start working again.
The curious thing is, success can affect your discipline too. If you get too many wins in a row, it is possible that you start to feel so optimistic about your ability to trade and make money that you start taking positions that don’t fit all your strategy rules. Boredom is another thing that might test your discipline. Most traders feel bored during quiet times when the market simply cannot move. Active traders get specially affected by the lack of volatility. Unless you have the discipline to stick to your rules, you will start forcing some trades during these periods.
If you feel exhausted your concentration levels will get worse and once again it will be harder to stick with your trading system. Adding the task of watching your charts every minute or hours and it is not that difficult to get to the point where you start trading on impulse. Your personal life will also affect your trading and your discipline levels. A simple case scenario is if you are stressed with any personal life problem, this will change the way you trade. You might have more difficulty to concentrate or you might trade higher stakes to try to make more money to solve a personal problem.
The most successful traders are not concerned with how much money they wil make per trade. They simply try to trade well and the profits will follow. They trade with a clear head and conscience. That is one of the most important factors that justify their success. Traders with no detailed trading strategy or plan are prone to lose theie discipline faster. If they have no rules, they often trade just by impulse and cannot improve their strategy or learn from each trade. The trading plan is one of the best tools to stick with your discipline. Keep testing it and adding more rules to make sure you are maximizing profits and reducing risks.
© Prabhu for Forex Videos, 2017. |
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