Most people new to forex trading believe that external factors are the most important aspects of being able to trade successfully in the forex markets. Most people look for a Holy Grail technique, technical indicator or robot to help them make a quick profit while trading in the forex markets.
However, the truth is that, just as with any other career or job, in order to be successful, you will need discipline and a focused attitude towards being successful. Discipline and focus usually separate those who are successful and those who are not.
In practical terms, having discipline means that if you know what conditions to look for before you enter a trade, you should not compromise on your rules just because you have a whim or a feeling that things could be different this time.
Discipline means sticking to your plan and your rules no matter what. This doesn’t mean that you shouldn’t adjust your trading plan from time to time; in fact it may be a good idea to do so until you have fairly consistent results from your trading plan.
If you want to maintain a disciplined attitude and therefore exponentially improve your chances of becoming a successful forex trader, you need to do the following;
You always have to be cool, calm and collected. This should be the case when you are making successful trades as well as when you are making unsuccessful trades.
If you become hard on yourself when the markets don’t go your way, you will likely begin to skew your perception of the markets and this will lead you to make more losing trades.
On the other hand, if you become too elated when you make a successful trade it could skew your thinking and make you feel indomitable and this will lead you to not follow your trading plan and make mistakes
Incorporate into your trading methodology, rules that govern when to stop trading. This includes rules for when you have reached a target profit amount for the day as well as when you have reached your maximum loss for the day or per trade. This will help you always to reflect on staying disciplined and reduce your chances of going off the rails.
Set a target that you want to achieve on a demo platform before you can begin trading live. This is a good idea because you will be able to practice your technique and fine-tune it, before you can take it live.
Keep your trading plan and your trading rules near your computer so that you can refer to them easily and always, as you trade. If you keep your trading notes close at hand, they will be at the top of your mind and you will be able to refer to them even when you are under intense pressure while trading.
If you find yourself hoping and praying that the market will go your way, this is usually a sign that your trading methodology or your attitude towards trading needs fine tuning.
Maintaining a disciplined approach does not have to be as difficult as it sounds, all you have to do is follow the ideas given above and you will become a success at trading the forex markets.
Phuong Zavala has been a retail forex trader for the last 8 years. She loves trading and shares her trading expertise especially with those in debt through the national debt relief program. Visit her site for more information.