Trading Forex With Discipline

Most traders under estimate the need for discipline in Forex trading and yet without it you will never win even if you have a system that can make money - some explanation will make how important it is, clearer to you.

What actually is Forex trading discipline?

It's the ability to enter a trade according to the rules of your trading system.

Why is it so Important?

Most traders believe the nonsense they read from gurus selling sure fire trading systems that they will not face periods of losses but even the best traders have many losses and you will too.
This doesn't mean you won't win, you can - but you must keep enter your trades that your trading system signals you to enter.

In Forex trading you need to take your losses and keep them small if you are going to win long term, it's as simple as that. No one likes taking losses but if you don't learn to take them and keep them small you will never win.

Why is it so Hard to Achieve?

When your emotions kick in, you are inclined to not listen to your trading signals, or let your losses run longer than they should or simply stop trading your system rules. The emotions that we experience are usually fear, greed and revenge. The fear that is experienced is fear of loss. Greed kicks in when we have a winner and want more and more from one trade, only to have that winner turn into a loss. Revenge is taking a loss and being angry and then entering a trade without checking the systems rules. We find ourselves in another loss. We all want to win and taking losses is hard the emotions of greed, fear and revenge then start to over rule our logical judgment.

Anyone who says trading discipline is easy, has never traded its difficult! Even for experienced traders – but if you have discipline you can win and make a lot of money.

How do you Achieve Discipline then?

It's based upon knowing what you are doing and having confidence in whatever trading system you are using. Most traders try and follow other trader’s systems and their confidence soon goes because they don't know what there doing.

They don't get the proper Forex education and they are unlikely to have confidence in something they don't understand.

You need to do your homework and know how and why your Forex trading strategy will lead you to success. Only by having this confidence in your Forex trading system, will you stay on course and win.

A Combination of Method and Mindset

Forex trading is a combination of a simple logical robust methods, which you have the confidence to execute with discipline and both need to come together for you to succeed.

Anyone can learn currency trading, it's a specifically learned skill but 95% of traders lose and while some lose because they have bad methods, most will have poor discipline. Good trading systems are a dime a dozen but, without discipline most are useless.

Forex trading success is more about mindset than method. Anyone can learn a method but fewer traders can execute a method with discipline.

So if you want to win at Forex trading- never underestimate the importance of Forex trading discipline, its vital to your success! So make sure you have the confidence in what you are doing by getting the right education which will give you the mindset to be disciplined.