Forex Trading Plan: Are you in it?
When trading forex , do you have a trading plan ? Have you EVER had a trading plan but have you “betrayed”?
If you have ever betrayed your trading plan, you should feel guilty, even though the “betrayal” can be caused by several things. Maybe you are a person who is easily bored, or your minimal experience makes you turn away from your trading plan.
Indeed, there are people who find it difficult to maintain focus so boredom strikes then you decide to no longer adhere to a trading plan that (in your opinion) wastes time. Or, one day you become so emotional that the response that you bring up is to hit all the rules in the trading plan.
Yes, it is true that losing focus and being emotional are common in trading, but that does not mean that the “habit” becomes something that can be forgiven if it continues. Especially if it leads to rash and rash decisions. For example, opening a position too fast, taking advantage too early, or the worst is allowing a protracted loss. This is dangerous.
Indeed, we do not need to expect to be a perfect “super trader”. There are times when we feel physically and psychologically tired so it is difficult for us to focus on trading. Especially if there is still floating loss decorating our trading terminal. Such conditions often provoke us to think, “Ah, fuck the trading plan . Once a little profit, I will close this position. The important thing is to finish quickly. “
Yes, I myself sometimes don’t have to wait too long. But that does not mean we can make it an apology and make it a bad habit. To anticipate it, you need to stay fit when trading. Get physically and emotionally fit.
Unfortunately, most traders who break the trading plan are indeed those who lack knowledge and experience. He did not fully understand what he was doing, so he considered it normal to violate some of the rules in his trading plan. Usually this happens to those who do not understand the trading plan they are using and – usually – not those who make the trading plan.
Psychological factors also affect the level of discipline of traders, especially beginners. The beginners usually have a relatively low level of confidence, especially those who suffer losses. They will easily hesitate to make decisions based on the trading plan used. Hesitation in executing a transaction for fear of loss, or – more dangerously – is hesitant in closing a losing position for fear that it can turn into profit and he will regret it.
Often the decision to betray the trading plan is often caused by the complexity of the trading plan used. Again this is usually the case for a beginner trader who does not build his own trading plan. So to avoid things like this you should start thinking about building your own trading plan in the simplest way possible, so that you can easily understand and apply. Remember, the benchmark is yourself. If you still find it difficult to understand and run it, it means that the trading plan is not suitable for you.
One of the keys to being able to win the fight in the world of forex trading is discipline. Once you can master this discipline of “science”, then your steps will bring you closer to profit.