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Forex
Trading: Important Rules 2
Discipline
and
Consistency
If
you would like the full
potential of your forex
trading systems to be
realized, it is very
important that you take
every trading entry,
alter every stop, and
close out every trade
when your pre-defined
trading system says you
should.
This
means that you will
need an extreme amount
of confidence in your
trading systems, good
and reliable
technology, and some
constant discipline to
stick to your trading
plan every
day.
The
advantage about being
consistent and
disciplined is that you
will have a pre-defined
plan for every
situation that you
might encounter in your
trading, this will help
you define what being
consistent really
means. If it is going
to be successful, your
plan will need to
include at least the
following
items:
• All
of the trading rules
for you to enter, add
to, and get out of your
positions.
•
What you plan to do if
your computer for
trading, internet
connection, broker,
power, telephone etc.
fail to be of any real
use or if they break
down.
•
What action you will
take if for some reason
you are unable to
trade.
•
What action you will
take if you lose a
certain percentage of
your
account.
•
What action you will
take if all the markets
are closed and you
can’t exit your current
positions.
You
cannot be properly
consistent and
disciplined in your
approach to trading,
unless you write down
the answers to all of
these possible worst
case scenarios. And, if
you ever lose money you
will not know if the
reason is because you
didn’t follow your
plan, if your plan is
not complete, if your
systems don’t work, or
if you are just going
through a losing
streak.
Letting your profits
run
This
rule seems superfluous
but is truly the key to
being a successful
trader. It is easier
said than done, but
part of your success
lies therein. When a
forex trade is
profitable to you it is
a normal fear
afterwards of losing
the unrealized cash
starts, and usually,
you truly want to close
it out now and quit
whilst you are
ahead.
Actually,
nearly all forex
trading consists in
long periods of small
winners and losers,
which are quickly
followed by a few big
winners which will
usually make the
difference between
trading which is
overall profitable and
simply breaking even or
even sometimes losing
due to trading costs
(commissions, spread,
and
slippage).
Now click for more
Forex
rules
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