In the world of forex trading, the term discipline means, you as a trader will be following the rules of the trading system strictly and accurately. For some, discipline means they are being serious about doing something but it is a whole lot of ball game when you associate discipline to forex trading. Having forex discipline is essential for the reason that, over 80% of forex traders loses their trades not because they do not follow a good trading system or they do not apply the right strategy, they lose for the sole reason that they are not following the rules of the trading system. In simpler term, traders do not have discipline.
Discipline can’t be taught in a seminar or found in expensive trading software. Traders spend thousands of dollars trying to compensate for their lack of self-control but few realize that a long look in the mirror accomplishes the same task at a much cheaper price. At a certain point, the trader who has lost all discipline acts in a way remarkably reminiscent of a gambler, since they have virtually stopped being a business person when it comes to their trading. Such a gambler might get favored with a long string of winners, only to gamble away all of their winnings and more before leaving the table.
Lack of discipline leads to emotional trading and is another of the major reasons why most forex traders fail. Losing discipline in a trading situation takes place every day in the market, and any of a number of causes and excuses are used by traders to justify their mistakes. Unfortunately, more often than not, a trader that loses discipline will eventually lose money as well. That is, unless they are extremely lucky, of course. Still, the fact remains that they are just not playing the odds when it comes to their forex trading activities.
Trading is basically without boundaries, the markets a completely free environment. You are free to buy or sell, enter or exit, at any point in time. There are basically no rules that require you to either open or close a trade at any given price or time. Despite the fact that one of the primary attractions of trading is the complete freedom to make our own decisions – to basically do whatever we want, whenever we want – the only way to consistently succeed in trading is to self-impose a set of rules to govern our trading and to practice strict discipline in following those rules.
Losing traders mistakenly believe that mastering the market itself is the key to winning. They fail to face the reality that the market can’t be mastered. You can’t control the market. Trading can be challenging enough, being your own coach will be the only thing that would help you to be honest about the state of your trading. Moreover, self-alertness will help you to maintain your trading discipline. Additionally, it will help you make the right decisions and the right adjustments.
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