Steps to become a disciplined trader
Currency trading is a tough task. To survive in this profession, you need to take some measures that will help anyone become a more disciplined trader. Discipline is difficult to teach, and it is best learned yourself by making multiple mistakes and not repeating them. Despite this, we will attempt to provide seven steps for becoming a more disciplined trader.
Prepare a trading strategy. Perform a backtest on trading strategy. Backtesting is all about gaining confidence and a thorough understanding of the trading technique you are using. You would be able to step on once you are confident in trade, whether it is a professional trader’s trading style or not.
It would be best if you accept full responsibility for everything that happens to you. It would be best if you examined it from every aspect possible. Try to think about severe possibilities as well. For example, if someone steals money or a broker defrauds you, believe that you played a role in creating the scenario.
Although that may appear to be a bit harsh, you would be better prepared for unpleasant events. You’ll have a greater chance of staying in the game if you do that and rectify part of what happens. Even better, if you quit making the same mistakes again and over, you will have a far better chance of success.
Find flaws and improve on them. Once you’ve found them, get rid of them. Create a diary and record everyday transactions if it helps you. Determine what is wrong and how you might better by not making similar mistakes again. If required, use the demo account from Saxo and improve your trading skills. Stick the practice trading account till you become comfortable with your trading actions. But never trade the market without having strong confidence in your skills.
This phase goes over all the things that may go wrong again. Determine response to the issue ahead of time. You would be more prepared for the unexpected this way. It is not by chance that we are emphasizing mistakes- they happen; things go wrong all the time, and if you don’t have a sound strategy, it may all come crashing down. This is something you do not want to happen, so plan the best you can do.
Daily, evaluate yourself. Because you are the most asset in a trading firm, you should devote most of your time to analyze market movements. Parts of the study should involve examining emotions as well as significant events in life outside of trading. The more you are conscious of such difficulties, the less power they will have over life and, as a result, the business will improve.
Determine what may go wrong at the start of each trading day. Make it a part of the morning routine. Try to consider what may go wrong and how you will handle it. Like an athlete, you must engage in lengthy mental rehearsal and envision all possible scenarios. This will significantly enhance performance over time and maybe the difference between losing and winning. Do this every morning before you begin trading.
In our perspective, the final stage should be a summary. You should do a daily debriefing after each trading session. Ask yourself, “Did I follow my own rules?” If you answered yes, pat yourself on the back. Pat yourself on the back if you lost money but still follow the guidelines. It is preferable to lose money on certain days while adhering to guidelines than to earn money while disregarding them. The goal here is to be consistent, which is achieved via perseverance and tremendous discipline.
So, FX people continue to improve and don’t allow bad days to derail progress. But it is critical to know when to stop and remember that the finest opportunities are the ones for which you have waited for the longest.