If you want to earn profit continiously from Forex market then you have to have minimum one quality. It is discipline and nothing else. If you follow a trading system, then you have to be strickt in your system. Unlit the market come to your exact pattern and entry signal, you should not enter into the market. You have to stay out and wait for your preselected pattern. This strictness in a certain trading system is called forex trading discipline.
There are 4 crucial factors in forex trading discipline:
Being strict in one secure trading system: There are may stretegy in forex trading, but you have to choose only one among them whice you understand best. Jumping from one system to another trding system will loss your time and money also. Suppose, if you comfort only support-resistant level trading, then you have to wait until the market reach at the support or resistant level and calculate others related calculation like fundamental news, fibbonaccy or daily pivot level ect. If you follow your rules strictly then you are descipline forex trader. If you do not follow your rules and enter into the market else where, then you are undiscipline and greedy trader. The result of this type of traders are not good.
Being strict in money magagement: Money management system maybe varied but you must follow it. To me alwayes keep your stoploss in 2% of your balance. No more or no less. If you see suddenly a big opportunity and you have enough confident that the market will go your target direction and you can increase your stoploss 10% of your balance that means you are taking 10% risk of your balance. You are greedy and undisciplined at this moment. Any kind of opportunities you see in chart, you must be strict in 2% risk. If you follow this rules that means your discipline forex trader. By following your rules you can earn continiously.
Being strict in entry level: If you follow it that when market goes 2-3 candles in a certain time frame, then you enter the market. But if you see that market have already completed 4-5 or more candles but there is also have the trading opportunity. As you are late in market, you should not enter the market. If you enter the market to get rest of the pips, that means you are not following your 2-3 candles rule. You are greedy and undisciplined in forex trading. You can not earn profit continiously.
Being strict in exit level: When you enter the market, you know your target level from where you will exict your trading. In this case, you can follow 2-3 exict level. If you enter into a market and setpu your 2 exit levels. Now you are in profit and your first level hit, now if you think market must hit your second level and thinking it, you do not close 50% or 60% of your position size, you are greedy and undisciplined. Market may revers and hit your stoploss.
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