This article is aimed at traders that truly want to be successful at trading. We will discuss the most important skill set that all traders must develop.
After reading leave a thoughtful comment or question. We will respond promptly and do all we can to help you obtain a successful trading strategy.
Laying the Foundations of Forex:
In order to break the barrier to become successful at trading, there is a set of skills that each individual trader must develop. I call these the 5 Laws of trading. With the right foundation of principles, anyone can become a successful trader.
We will begin by explaining the most important principle, which lay the foundation for creating a broader trading strategy. Only by understanding the first law will the remaining laws begin to make sense. When you build a house where do you start building? You don't start at the roof because if you did you would have nothing to build on. A house is built step by step and each step builds upon the other in order to get the completed structure, your house.
Trading works in the exact same way. With a solid foundation of trading fundamentals, you will be able to achieve your long-term trading objectives.
So what is this skill, you ask?
Discipline is the foundation of all functional trading strategies. Without discipline, you will be harmed by the risks of active trading. These risks include fear, greed, and missed opportunity. Only by holding yourself accountable and remaining disciplined at all times will you be able to achieve your trading goals.
To learn more, read our Forex Success program.
If you focus on your trading strategy before learning discipline, the details of your strategy will not really matter. Discipline is what makes successful trading strategies possible. Discipline is why technical indicators, risk management techniques, and trading principles pay off in the end.
It is very easy for traders to feel overwhelmed. Once losses begin to pile up, it can be very tempting to take early exits. Once gains accumulate, it can be very tempting to press your luck. Disciplined traders are not distracted by any particular price movement. They realize that, when applied correctly, their trading strategies produce net gains over time.
As the foundation of trading, discipline is what will allow you to put your trading knowledge to good use.
3 Steps to Becoming a Forex Trading Discipline Master:
Trading Discipline is ESSENTIAL: Without Rules how will you be able to follow them? pic.twitter.com/HpH6ILQxuh
— Casey Stubbs (@caseystubbs) August 8, 2015
Becoming a successful trader will require time and practice. However, there are still quite a few things you can do to improve your level of discipline. When designing an effective trading strategy, keep the following things in mind:
1. Have a clear set of trading discipline rules to follow-- If you don't have guidelines how will you be able to follow them? You can't. So, get a set of rules and start following them.
2. Start with something easy and grow your discipline --- The best trading strategy for you is one you fully understand. Traders that are overwhelmed, nervous or confused are likely to lose their sense of discipline. Once you start small and begin to have success following your rules, you will gain confidence. Not sure where to start? Find the best trading strategies for your needs here.
3. Make Your Goal Following Your Rules--Traders want to make money! However, we need our foundation first. If you can't build a foundation then you will never ever make money trading. So until you master following your rules, make it your goal to follow the rules, then from there when that is established then you begin to tweak elements of your strategy which will launch you into profitability. Here you can learn on How to fade the momentum in Forex Trading.
Making trading rules is surprisingly easy. Begin by developing a consistent trading strategy. Trading at similar times of the day and holding positions of similar lengths will make your moves much more predictable. You should also only use asset classes and trading platforms you fully understand. There are still plenty of opportunities for profit within your comfort zone.
Ask yourself the following questions:
- What technical indicators should you use?
- Are you a risk-tolerant trader?
- Which assets do you hope to trade?
- What are your current trading parameters?
- Are you comfortable issuing stop-loss orders?
It will help to write each of your rules down. This will make each rule easier to remember. Eventually, following these rules will be instinctual. Regardless of your trading preferences, discipline will remain important.
Are you a Trading Discipline Disaster?
If you're reading this right now and you are not currently a master of self-discipline trading, take a step back and think about how this is impacting your trading and your life. I would like you to reach out to me via the comment section and tell me which changes you plan to make. Share this post with your trading friends. The road to success all begins with discipline.
If you want to learn more about trading discipline go ahead and click here: https://info.tradingstrategyguides.com/strike-trader-elite/
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