If you are looking towards making consistent profits as a Forex trader, then there is one thing that is quite crucial for you and that is discipline and self-restraint. Despite being such a vital part, majority of the newbie Forex traders struggle to maintain self-control when trading live.
This post will hopefully motivate you to discipline yourself better by emphasizing on the how and why of disciplined Forex trading.
What Makes Discipline So Crucial for Profitable Forex Trading?
Make no mistake about this – there can be no success in Forex trading without a high degree of discipline. And the weird part is that almost every trader is aware of this basic rule of Forex, irrespective of being a pro or an amateur.
But the real difference between a pro-Forex trader and a newbie is that the pros walk the talk, while the newbies only talk. When it comes to action, they tend to rationalize and use some kind of twisted logic to avoid discipline until they can manage to rake in a fixed amount of money.
Trying to justify the lack of discipline is one of the crucial blunders that almost all traders make at some point. But remember that this is basically a slip-up created because of your greed, and greed is a major obstacle to your Forex trading career in the long run.
It can single-handedly finish off all the balance in your trading account like a tornado. An avaricious trader always tries to stack a lot on his trades and in the process will risk too much per trade.
But remember that over-trading and over-leveraging are the two focal points why most Forex traders lose money.
The most important thing that you need to keep in mind if you are aspiring to become a successful forex trader is that you need to maintain strict control over your greed.
If you want to stay for long in the Forex trading market you need to rake in profits and for that you will need to inculcate certain habits that are positive and constructive. Habits have a huge impact on your life and possess the ability to outline your life situations and can also determine how much success you attain in the things that you do.
It is a regrettable fact that for a majority of people, it seems to be a humongous ordeal to inculcate the habits of a successful forex trader.
The problem with majority of the Forex traders is that they have inculcated negative habits that can take away all chances of building a profitable trading career and these habits have a very strong hold over them. It is as if they have guaranteed their own failure even before they have even entered the markets.
For example, most of the traders have high hopes of making quick amounts of money and they dream of quitting their regular day jobs but have relatively tiny amounts of capital which they can hardly afford to lose or risk in forex trading.
So basically what happens is that they are playing a huge gambling game and the battle is against their emotions on one side and the stark reality on the other side.
But the sad fact is that they don’t realize how things work. The more desperate they are to make money the farther they get thrown from the remotest chance to make any of it.
If you want to make money and succeed in forex trading you must first learn Forex money management. There are two options to do this effectively. First is to have a decent sized trading account balance, with at least $1000 in it. Or you can do another intelligent thing and that is to use other people’s money to trade.
No I am not asking you to do anything illegal like plundering or hacking accounts belonging to other forex traders. Instead I am suggesting that you display stellar performance with your trades and consistently generate profits.
This will make your trading seem attractive to investors and they will be motivated to invest their money in your account and you can think of it as if you are getting a trading job done. But bear in mind that you need to rake in remarkably consistent levels of profits with your Forex trades.
Vital Steps in Building Positive Habits
Once you have wholly understood how to manage your forex account in an effective and profitable manner, you can slowly start efforts at building new forex trading habits. As discussed earlier, these habits are the very foundation of building a profitable and long term forex trading career. But since habits take time to be inculcated you need to have a proper plan to build new constructive and positive forex trading habits.
Among the first of the many steps in building positive habits, is to know, recognize and master an effective trading strategy that will help you rake in profits when you trade live. But having a master strategy by itself is not going to bring in any benefits. Next you will need a solid Forex trading plan which will be your monitor or blueprint while trading live in the forex market.
Next among the steps is to create and maintain a Forex trading journal. Proper and effective trading plans and trading journals are both hugely important tools that any profit making and successful Forex trader can have in his or her Forex trading kitty.
You certainly will need to remain determined and alert and keep on reminding yourself of the significance of discipline. And this needs to be done each time that you routinely trade the live Forex markets.
Because if you ask my opinion, I think if there is anything more difficult than adopting a new habit, then it is consistent and constant maintaining of that newly learnt and inculcated habit. It surely seems to be very difficult at first, but do not lose hope. If you can successfully keep reminding yourself of the many benefits and profits that you will be possibly raking in while you trade the live Forex markets in future.