Forex Trading - A Practical Tip - Discipline

You may think that your capital investment is the most important asset that you can bring to forex trading! Well, here's a hot trading tip - there is an asset which is far more important, infinitely more valuable and decidedly more likely to lead to your future success as a forex trader than any amount of capital.

It is a personal attribute - which means that if you don't yet have it, you can try to develop it - it is, of course, discipline. It is the single most important factor for safe trading. In my book, 'safe trading' means that your capital will never be at risk.

Discipline is essential for anybody who seriously wants to make a comfortable living from trading the forex. Only if you have discipline will you be able to control that monster GREED which we all have to some smaller or larger extent within our human natures. Only if you have discipline will you be able to make the right trading decisions - the decisions that will protect the profits that you have already made.

A lack of discipline in your nature will lead you into a cycle of trying and failing and trying again and failing again as a forex trader. You will seek yet another trading system in the hope that the next one will be the one. It won't be. There isn't one magical forex system which will make you rich. Only with the discipline to trade the forex in a consistent, safe and business like manner will you earn a very nice and increasing income over time.

You need discipline to find a successful trading method because you will not find one for 50 dollars on the internet! Your successful trading method is within you and with the discipline to experiment, to observe the charts, to invest time in your forex knowledge base and you will find your trading method.

You need emotional discipline or your trading will become erratic. The worst thing that can happen to a trader is that they experience a dose of beginner's luck. An enhanced sense of confidence as the result of a few good trades (probably flukes) is a huge threat to your working capital. If you make a good trade - don't let the adrenaline rush send you headlong into another attempt. Instead, analyse your trade - do you really understand why it went well for you? If you do - great! Use this knowledge towards the development of a controlled trading method. If you don't understand why this trade was a good trade, heave a sigh of relief at your good luck and recognise it as such.

More on Forex Trading

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