Just like any other skill-oriented craft, forex trading demands a certain level of discipline in order for you to become successful at it.
You’ve always got to keep your eyes on the prize and also stick to the rules of your forex trading strategy at all times if you want to succeed in this business.
And this, ladies and gentlemen,
… is exactly what experienced traders call Self – Discipline in forex trading.
If you would like to join the ranks of the lucky few forex traders on earth, you’ve got to have a rock-solid forex trading discipline!
In this article,
I’m going to give you my top 3 tips for developing a sound forex trading discipline which you’ve probably never heard before.
So keep reading.
What Is Self-Discipline?
Self-discipline is a mental technique that tries to redirect the focus of our attention to attaining a goal or desired objective when the attainment of that goal conflicts with other components within our mental environment.
If that sounded a little too geeky, allow me to break it down for ya!
To put it in simple terms,
Self-discipline involves the development of a mental framework that is supposed to help you to stay focused and motivated on achieving your goals regardless of the minor challenges or setbacks which might try to stop you from doing that.
Contrary to what you might have been led to believe, self-discipline is not a trait which traders are born with.
It’s also not a talent that is exclusive to some group of forex traders either.
Anyone who is willing and able can develop and adopt self-discipline into their forex trading regimen.
But I’ve got to be honest with you,
It ain’t as easy as it sounds!
Even though forex trading might fascinate and intrigue you at first, the chances that you’re going to suffer trading losses are usually very high.
… And this part can be very disheartening for most people bear. Heck, it could even cause others to quit forex trading altogether.
And this is exactly where Self – Discipline comes in to save the day.
Why You Need To Develop Sound Forex Trading Discipline
It’s not going to be enough for you to simply sit behind your trading screen all day, every day, taking trades and hoping for the best.
This is the primary reason why developing forex trading discipline is such a necessary and important trait for any struggling trader whose goal is to ultimately transform into a consistently profitable trader someday.
Tip #1 | Set Crystal – Clear Trading Goals
If you would like to develop a rock-solid, forex trading discipline, you’re going to need to have a clearly defined target or goal in mind before anything else.
Having a realistic, tangible goal is the first step you’ll need to take to develop self-discipline since this will give you the motivation you will need to get through the obstacles you might face while you trade the markets.
But I’ve got to warn you though. Setting vague goals such as;
“I want to make a truckload of pips”
… are just not going to cut it.
You’ve got to set realistic and achievable goals which agree with the rules of your forex trading plan, risk management as well as your trading style.
A realistic goal could be something like;
Trying to maintain a 60% Win – Rate, for example.
If you ignore setting these goals or targets, you could easily get stuck in a state of discouragement since you’ll have nothing to strive for with your trading.
Tip #2 | Create A Fool-Proof Action Plan
If you took the time and effort to set realistic and achievable forex trading goals, you’re already one step closer to becoming a more disciplined forex trader.
For instance, setting a crystal – clear goal such as;
Cutting your trading losses short while letting your profits run.
… is going to make you much more alert to consciously placing trailing stops on your open forex trading positions at all times.
And, this is simply because this goal needs to be followed by a strategic plan of action which is supposed to transform it from a mere wish into reality.
This is also true for all of the other forex trading goals you might have.
You’ve got to follow them up with a concrete plan of action that will make them a reality or else you’d just be making wishes and not actually setting goals at all.
On the contrary,
If you were to set vague goals, you’re probably going to have a tough time thinking about what you would need to do to make them a reality.
This would consequently make you become even more vulnerable to emotions when you trade the markets.
Now I’m pretty sure you wouldn’t want that to happen to you, right?
Tip #3 | Keep a Detailed Trading Journal
Another great technique that will help you to practice self-discipline is to keep a detailed journal of your forex trading activities.
A forex trading journal will help you to stay motivated and keep track of your trading activities to see whether you’re improving your trading skills or not.
It is completely natural for you to encounter obstacles and distractions along the way. Heck, there are going to be plenty of times when you will get discouraged and feel like quitting.
It’s at times like these that your forex trading discipline is going to be tested.
… your desire to become a profitable trader must be strong enough to overcome all the conflicts which might try to prevent you along the way.
Keeping a trading journal is going to make this a lot less stressful, Insha Allah.
Once you reach your goal, take some time to look back at how you did it and think about the things you had to go through in order to achieve it.
“What were the things that motivated and propelled me to reach my goals?”
I’m pretty sure you’re going to find Self – Discipline at the top of that list.
Nothing can help you transform from being a struggling trader to a profitable trader like a sound forex trading discipline.
Not even a trading strategy that boasts of a Jaw-Dropping 90% Win Rate!
Therefore, absorb the tips in this article and take the necessary steps you need to take to join the lucky few profitable forex traders on planet earth today.
I hope you enjoyed reading this blog post.
Let me know which one of these tips you’re going to be implementing in the comments section, okay?
I’d really love to hear from you.
I want to follow the above 3 tips because they sound so helpful. Is there anywhere I can find a trading journal?
Secondly I would like to know how long did it take you to turn your trading around and what did you do to turn it around? And also how much did you start your trading with before you saw profits?
Thanks a lot for commenting on the post Moyahabo.
Now regarding your question about Forex Trading Journals, I would simply advice you to start by taking screenshots of your chart images before and after you place trades following the rules of your chosen forex trading strategy.
… and you could also use services such as http://www.MyFXBook.com to properly analyse your trading performance as well.
And to answer your second question,
I started seeing signs of progress with your trading when I chose to adopt the Trend – Following trading style and avoided chasing for that holy grail forex trading strategy which would give me 100% winning trades (which doesn’t exist by the way).
I really hope this helps.
Please feel free to reach out to me again if you’ve got any other questions or comments and I’ll try to assist you as best as I can, insha Allah.
Have a great day and May God bless you Moyahabo.