Develop Trading Discipline

[Guest johnsmith00710]

 

Develop trading discipline in yourself if you want to become a successful trader in the long run. In a trading session, if you come to a point in your market analysis when you have no confidence on the accurate direction of the market forecast. Always remember, a lost opportunity is better than lost capital. Choose not to trade.

You should wait for the market conditions to become clearer. You should increase the probability of success by trading when the trade setups are strong. This is far more important in forex than in stock markets as the forex markets move a lot.

You should understand that high leverage gives you the opportunity to make a lot more money much faster. But in case you go wrong, you can get your account wiped out. When you don't see an opportunity clearly, try to sit on the sidelines. Wait for the market conditions to become clearer. Learn to be a patient trader. Let the market come to you.

You should understand that leverage is a wonderful money making tool. It is the key to making money in the currency markets as no other markets allow high leverage that this market allows. A leverage of 100:1 means that for a $1000 deposit, you can trade $100,000. This huge amount of leverage gives you the opportunity to make the kind of returns that you want.

But using high leverage also has the potential of making you lose some or all of your capital if you trade foolishly. Take the example of credit cards. The bank let's you borrow huge sums of money using your credit card on the promise that you will pay it back.

But in case you abuse your credit card. It can lead you into heavy debt. It can even result in bankruptcy. You should manage leverage in forex trading like you manage your credit card. You have $10,000. It does not mean that you should trade 10 lots and use all your $10,000 capital. Using all your capital in one trading session would be foolish on your part and highly risky.

A very conservative yet very effective method would be to never leverage more than 20% of your account. Thus, you should only trade two lots with a $10,000 capital. Using good money management and discipline, you grow your account successfully in a short period of time.

Don't forget the power of compounding. The compounding factor applied to your capital can make it grow fast. Many people want to get rich quick. They take unnecessary risks while trading, thinking that a few big wins will make them rich. They don't focus on proper trading principles. You need to develop the discipline in yourself to follow simple money management rules.

If you are trading a mini account, start by trading one position of one tenth of a lot. You will not make much money in the beginning as the position size is only one tenth of a normal lot. But the percentage of returns will compound over time and let you trade a much larger sum of money with the passage of time.

As a forex trader, you should make realistic goals. Goals that can be achieved over time! You should not use your life savings. You should never borrow money to trade. You should not use money that you would use to pay monthly utility bills. You should always trade with the money that you can afford to lose! Never ever trade with money that you cannot afford to lose! It is foolish. You should not think like a gambler. Trading is business. It is not gambling.

Here are some free strategies for you. direct download link

http://www.forexprofitmagic.com/free-fx-system-abs

 

[Noah Jackson]

It is one of many economic fundamentals that affect the relative value of a country’s currency. A positive or favorable balance of trade is known as a trade surplus when exports exceed imports. I am trading with Bprimes and aware of economic output. A trade balance, or balance of trade, is the difference between the monetary value of exports and imports of a specific country’s economic output over a certain period of time.

[Jo Eshuijs]

A disciplined Forex trader can work better then and can run better business in his trading life. As a trader to get maximum support I join Forex4you trading platform. This is a well- experienced broker in this world market place. With their expert monitoring system they support their traders to become disciplined. Before join to their real trading account I practiced on their free demo account to get better idea of trading.

[uncle gober]

implementing discipline must indeed be able to be done well by traders since it still runs trading activities on real accounts, which is why traders must be able to be more maximal in generating profits that are in line with expectations.

[Eshkere]

I find discipline very important on forex market. It took me some time to learn it but it has save me few times from very sharp moves. I always put SL and TP values. And I also have an exit strategy in case that market moves opposite to my expectations and open position

[ViproMarket]

applying discipline must indeed be able to be done by traders, this is needed so that traders can get better and be more maximal in carrying out trading activities that are in line with expectations.