How To Improve Focus and Discipline In Forex Trading
In today forex faq, we have a very good question from one of our fellow readers here in my blog.
Below is the question:
What can we do to improve focus, maintain discipline and not to do different from the trading plan.
If you have been following my blog, you will know that I emphasize a lot of trading demo account. The main reason why I always encourage students or readers to start trading demo account is to train your focus and discipline.
I do not know about you guys. When I first started trading forex after learning something, I will eagerly log into my trading account to look for trading opportunity.
The problem is even when there is no setup that is according to what I learn, I will still enter a trade and this act alone has turned forex trading from a trading perspective into a gambling perspective.
Whenever you enter a trade that is not according to your strategy, you are in fact gambling currency and not trading currency. This is a sign of lack of discipline from a trader.
It was until I lost $20,000 in forex that I started to realize this. That was also when I started to be serious about demo trading and it is from demo trading that I slowly train my discipline in trading.
One thing that I believe is the main course of no discipline in trading is the eagerness to see profits.
In the past, I used to think that I can start to make money from forex one week after I finish taking a course but instead I lose thousands of dollars after that.
This is because this eagerness is causing me to enter trades that are not in accordance to the trading plan.
Therefore if you want to improve focus and discipline in trading, you must first stop thinking that forex is a get rich quick scheme. It is a decent way of making money like doing a business where you need time to attract customers into your shop.
You must be willing to spend time on your demo account where you can get rid of those lousy trading habits that is in you at the moment.
You will only be profitable once you manage to kick off all those lousy trading habits that is in you at the moment.
Once you become realistic in your perspective in forex trading, you will have the patience to only enter trade when the setup is according to your trading plan.