Be Disciplined in Forex Trading
introduction:
What do you think the key for
forex trading? It is not the perfect strategy, but ''perfect discipline''.
Discipline is a controlled behavior. So in forex trading you must have a controlled
behavior which follows your strategy. Discipline will separates you between
success and failure.
Have you ever set your trading
goals, set your stops and limits but eventually forget about that. You have
your strategy but still didn't do the strategy and enter the market although it
is not suits your strategy. And finally lost your money. How could that
happened? It's because you lack discipline. Many beginner trader and some
experienced trader too, often enter the market because they are tempted to go
in due to the fear of missing out a big move although it breaks their trading
rules.
Steps to take:
Ø Be easy on yourself for your mistakes. The more you get
upset with yourself for your mistakes the more it will influence your future
trading.
Ø Keep practicing on a demo account. Set a goal, if you
haven't got 50% return you will not go for real trade.
Ø After every losing trade close your forex platform.
This will you get you some time to cool off.
Ø Put a Post-it note at your screen to be disciplined, so
you remember to be disciplined.
ØIf you find yourself praying for the market, that is
ominous. Close your forex platform immediately.
Ø Have your spouse accompany for your trading. She/he can
reminds you for your action.
Ø Use a demo account and have your spouse to trade for
you. When you want to enter the market, you need to talk to him/her. This will
slow your action and make you thinks clearly.
ØRelax and visualize yourself of your mistakes. Imagine
your mistakes. Imagine your loss because of greed. In your mind see you takes
defensive position for your next trade. Imagine every details of next trade. Do
this often to change your mind.
ØFocus on your trading. If you have something else to do
like working, don't trade.
Tips:
*The key is making money in any
financial market, including forex, is '''buy low and sell high.''' Study the
charts to see where the support is (a price level the currency pair never seems
to go lower) and aim to buy at that level; likewise, see where the resistance
is (a price level the currency pair never seems to go higher), and aim to sell
at that level. More likely than not, you will make money by so doing.
Warnings:
*Don't be too greedy. Aim for
20-100 pips at a time to take profit.
*Don't use stop-loss. If you
don't risk too much at each trade, and follow "buying low and selling
high," the price will almost invariably come back, even if it goes against
you -200 pips, -300 pips, or even -400 pips. Forex is volatile so if you use
stop-loss, your stops will very likely be taken out and you will lose money.
*Don't trade too many different
currency pairs simultaneously. This will endanger your margin requirement.
*Don't risk any money you cannot
afford to lose. Risk money is money that if lost will not change your lifestyle
the slightest. Consider ALL money deposited into a forex account as lost.
*Don't risk too much on any
single trade. Keep a comfortable margin.
