Sunday, December 3, 2017

Become a Disciplined Forex Trader

Why can two Forex traders, having the same knowledge, using the same method get two very different results?

The reason is that one of them has the right trading psychology while the other has not. One is a disciplined trader and the other is shaky. If you want to succeed in Forex trading, you'd better work on your trading discipline. It will not happen otherwise.

How do you become a disciplined Forex trader? Here are a few tips:

1. Control risk - Deviating from what you know to be good, solid, trading habits and decision is understandable. After all, Forex trading involves risk of losses. This is enough to drive anyone a bit crazy. What you need to do to make it easier for yourself is to control and minimize your risk. The less exposed your are the less susceptible you'd be to bad emotional trading decisions.

2. Stop worrying - Risk will always exist but if you control it and you're using a trading method you can trust, then you need to stop worrying about it. You can't lose much and there's no reason why you won't end up profiting. Trust in your ability, you can make money and you deserve to make money. It will happen if you stop worrying.

3. Practice your trading method - You've heard the saying Practice makes perfect. This is also true for trading. If you practice executing your trading method over and over again, and make sure to do it right, it will quickly turn into a second habit. Once that happens, you will have a higher degree of resistance to your emotions and you won't be easily swayed to disregard your trading method.

4. Never assume anything - A lot of traders tend to assume things about the market and where it should be going. For instance, if the price of a certain currency pair dropped by 800 pips, they assume it would be going up soon. The market does not operate according to your assumptions. Let them go. Whatever you least expect will likely happen anyway so don't allow yourself to be fooled. Only trade by your method, not by any assumptions or hunches.

5. Don't overtrade - Trading too often invariably leads to too much risk taking and increases emotional anxiety. Limit the number of your trades until you learn to control your emotions better. It will save you from some nasty losses.

For some killer mental trading tips visit Disciplined Forex Trader Tips