Building a Trading Discipline

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Trading forex is an exciting profession that requires quick thinking and nerves of steel. The markets move so quickly that it can be difficult even for the most experienced traders to accurately judge the direction at any given moment. While forex wins can be extremely rewarding and build confidence in any trader, just the opposite can happen when faced with a series of losses. We cannot predict what might happen around the world now, an hour from now or tomorrow, but we can set up rules for ourselves that will keep us on the right path. By that I mean to have a steady course that we follow so we don’t fall prey to whims or instincts. Here are some basic points to remember.

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Sticking to Your Trading Routine

You studied charts, learned how forex works and then spent long hours with dummy accounts to get ready for your first trade. Through trial and error, you were able to create your own trading style and routine. A typical routine would begin with pre-market analysis where you go over the charts and check all financial news reports. When armed and ready, you could join the trading hours for the country’s currency that you are working with. Towards the end of the trading session, you can take the chance to fill in those final hours when you can typically trade against the trend.  This is when positions close and are dumped back into the market. Whether that is your exact trading routine, or you vary it, the important thing is to never deviate from it. Maintain the exact same trading routine every time you join a session.

 

Follow Your Trading Log

Use your own trading log as your guide. Once you make it a habit of maintaining a precise log of trading sessions, you can observe a clear picture of how you can earn the highest profits. No matter what you do, you need to understand your trading success and losses and believe in your proven methodology. Every trader is different and does well using a specific set of proven rules. View your trading log as your best friend and don’t ever leave it behind!

 

Stay in it for the Long Run

To be a successful trader in the long run, don’t let yourself burn out in the beginning. It can be easy to get caught up in the excitement of daily trading and continue trading when you should be stopping. Set the hours that you are going to trade and stick with them. Don’t try to go into overdrive to get in extra trades. This is especially a temptation when you are closing a poor trading session. You might fall into the trap of staying in the session longer than you should in hopes of recouping some of your losses. This is a mistake that can result in a short-lived profession as a trader.

Accept your wins as well as your losses as one step towards your goal of being a professional and successful trader. Learn from mistakes and trust your trading schedule.

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