Secret Discipline in Forex Trading
One of the keys to success in forex trading is discipline, starting from making a trading plan to running it as a rule that you must fulfill. Every execution must not be done with doubt, but must rely on the trading plan that you have painstakingly compiled.
All legendary traders believe that discipline cannot be separated from the trading activities carried out. Dr. Alexander Elder even discussed it in his book entitled “The New Trading for a Living: Psychology, Discipline, Trading Tools and Systems, Risk Control, Trade Management”.
Discipline Is Not Talent
Discipline doesn’t come by itself. Did you already have discipline once you were born? Certainly not. Discipline is not a person’s natural talent, but must go through practice and habituation.
Actually everyone can be disciplined, but indeed the word is easier said than done. It is usual that every initial step feels heavier, including running discipline in trading. Take for example: execute stop-loss. The first time you do it usually feels very painful, so it might cause you to decide not to use stop loss at all.
That is obviously dangerous, but sometimes people have to deal with danger first before realizing the mistake. Like the example above, without stop-loss you will face the risk of loss that is not measurable, even to spend your capital. At times like that people will usually think, “If I had installed a stop-loss …”
Usually so. But not a few others, who silently fell into the same hole many times. Such an ignorant trader who has a history of deposit frequency is far more than withdrawal. Deposits, expires, deposits again, are used up again. So keep repeating.
Unless you want to be trapped in this vicious circle, it’s good you start to know what you have to do to establish discipline in forex trading .
Focus on the process
The goal of everyone in trading is to get money. Is it true?
It is true that every economic activity certainly expects profits in the form of money. But Dr. Alexander Elder had a somewhat different view of this.He said, “The target of a trader is not to print money, but to do the transaction correctly. If a trader transacts correctly, money will come by itself. “
Elder clearly intended that a trader should focus on the process, not on the target. To be able to run the process well, inevitably a trader must hold firm to the trading plan he has set. Of course the problem of testing the validity of a trading plan also requires a separate process.
The right process is not always sweet. There are times when some losses hit you. But don’t be afraid, because it’s common in trading. As long as you run a trading plan that has already been tested for quality, rest assured that a number of times that loss will pay off with greater profits.
Well, even with the right process you can still lose, imagine what could happen if you didn’t run the right process.
Be patient and earnest
In shaping discipline to run a forex trading strategy , patience is absolutely necessary. Be patient when opening a position, wait until the signal is confirmed. Be patient, too, when you will close the position, wait until your trading system actually gives a signal to exit the market. Also, be patient when even though your perseverance has not produced satisfying results, even attaching a number of minus numbers in your account history .
Be patient, because sincerity in running a trading plan with discipline is indeed an initial test that is sometimes not easy. All seasoned traders have experienced this, but look: those who are patient and earnest come out to be champions.
There is an Arabic proverb that reads: “man shobaro, zhofiro”. Who is patient, will be lucky. This saying usually comes hand in hand with “man jadda, wajada”. Whoever is serious, will get (succeed).
Always think positive
This is also easier said than done, but actually there are, the positive side of each event.
For example in trading: you experience loss . Prices move against your desire so stop-loss is hit by the market. What is the positive side?
The Positive will think, “Luckily I put a stop-loss . If not , run out of my money. “And he could still smile to turn off his laptop or computer, then go refreshing so that tomorrow he could fight again with enthusiasm.
The Negative will usually grumble, “Aah … got my stop-loss! Mending does not need to put a stop-loss ! “Then in the next transaction he really does not use stop-loss . Once, twice, he survived. In the third experiment, the price is against his will. He still insisted not to cut losses . Some time later, forex trading remains a black page in its financial history.
It is clear that discipline is needed to be a successful trader. But the road to the level of “disciplined trader” is not less steep and winding. Quite a few surrendered in the middle of the road. That’s because they only think about the results but don’t bother to devote energy and thought to the process that must be passed.
I forgot where I got the picture below. I thank anyone who first drew it, because the message was so deep. Images that give a message to anyone not to give up, because success can be so close when we give up.
So? Never quit.