Trading secrets according to Dr. Alexander Elder
One key to success in forex trading is discipline, starting from trying a trading plan to doing it as a rule that you must fulfill. Every execution must not be carried out with doubt, on the contrary must rely on the trading plan that you have arranged so hard.
All successful traders believe that discipline cannot be separated from trading activities. Dr. Alexander Elder even discussed it in his book entitled “The New Trading for Living: Psychology, Discipline, Trading Tools and Systems, Risk Control, Trade Management”.
Discipline Is Not Talent
Discipline does not come naturally. Have you been given discipline when you were born? Certainly not. Discipline is not a person’s natural talent, on the contrary it must go through practice and adjustment.
Actually everyone can be a discipline, but indeed the word is easier said than done. It is normal that every initial step feels heavier, including doing discipline in trading. Take for example: stop-loss. The first time I did it was usually 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 their mistakes. As the example above, without stop-loss you will face the risk of unmeasured losses, even to the point of spending your funds. At times like that people will usually think, “If we had installed stop-loss”
That’s the way it is. But not a few who silently dropped themselves into the same hole many times. Such foolish traders who have a history of the frequency of deposits far outnumber withdrawals. Deposits, exits, deposits again, exhausted again. So keep repeating.
Focus on the Process The
goal of every person in trading is certainly to get money. Is it true?
It is true that every economic activity certainly expects profit in the form of money. But Dr. Alexander Elder had a somewhat different view on this matter. He said, “The target of a trader is not to print money, instead to make transactions correctly. If the trader trades correctly, there is no need to worry, because money will come by itself. ”
Elder clearly intends that a trader should focus on the process done, not on the target. To be able to process well, inevitably a trader must hold fast to the trading plan that he has set. Of course the issue of testing the validity of a trading plan also requires a separate process.
The right process does not always bear sweet fruit. There are times when several losses hit you. But don’t be afraid, because that is normal in trading.
Well, even with the right process you can still lose, imagine what can happen if you don’t do the right process.
In building discipline in conducting forex trading strategies, patience is absolutely necessary. Be patient when opening a transaction, wait until the signal is confirmed. Likewise when closing the transaction, wait until your trading system actually gives a signal to exit the market. Be patient too, even though your perseverance has not produced encouraging results. Or even attach some minus numbers to your account history.
Always Thinking Positive
This is also easier said than done, but actually there is a positive side to every event.
For example in trading: You experience loss. Prices move against your wishes so that stop-loss is beaten by the market. What’s the positive side?
The Positive will think, “Good thing I put stop-loss. If not, I will run out of money. “And he could still smile turning off his laptop or computer, then going refreshing so that tomorrow he could return to fighting vigorously.
The Negative will usually grumble. Then in the next transaction it really doesn’t use stop-loss. Once, twice, he survived. On the third trial, the price is against his will. He still insists on not doing cut loss. Some time later, forex trading remains a black page in its financial history.
It is clear that discipline is needed to become a successful trader. But the road to the level of “disciplined trader” was no less steep and winding. Quite a lot of people give up in the middle of the road. That’s because they only respond to results but don’t bother to devote energy and thought to the process that must be passed.