You will definitely have heard people saying, I know I have said it myself quite a few times, that self-discipline is very important in becoming a successful Forex trader.
Discipline is what will keep you focused on your strategy and keep emotional trading away from getting involved in your trades, as it should be.
But how exactly does one get to a point where they have enough self-control that they can discipline their day trading like they would their regular work?
Given below are a few quick tips to help you out.
- Get in the right mindset
Previously I have written about meditation and the right mindset for trading, but it bears repeating.
Start your trading day with intentionally fixing your focus and aligning your mind with your plan for the day.
Don’t approach the charts lazily or with a passive, distracted mind. You have to actively think about what your goal for the day is and what you are expecting from the market.
- Try your best to stick to a proven strategy
When I say “proven strategy” I don’t mean one that has NEVER led to a loss. That is not possible and it’s an unrealistic expectation to have from trading. Some losses are inevitable. Having said that, if you are confident enough about it and previously it has worked in your favour in that your profits have outweighed your losses then it is good enough.
Whatever the market conditions for the day look like see how they fit in your strategy. Can you use your regular profit target and stop loss margin etc.?
- Look at the big picture
Don’t trade day by day. Keep a trade journal and compare what you made in a day (if you are a day trader) and what your performance was like the next day.
This will help you keep an eye on your overall performance. It is easy to get swayed by your daily performance and not think about where you stand at the end of the month. If you lose on Tuesday more than what you made on Monday, then Monday’s profits have been nullified.
So make sure that you are keeping track.
- Analyze all trading decisions
Don’t make shots in the dark because that is when trading turns into gambling causing traders to lose money. You have to be cognizant of what you are doing and ensure that according to your understanding and research, it is the best thing to do. Like I said before, this does not mean that you will never lose, but it means that you will be able to learn from your mistakes.
If you are just taking trading decisions on a whim then there you can’t really learn much from it.
I hope these will prove to be useful. Remember that trading is work and in order to succeed, you have to be willing to put in the hours and the effort.
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