Applying discipline in Forex trading is an important step when implementing your trading strategy. In fact, how exact you manage your own discipline depends on how exact you have set out the rules in your own trading strategy. The subject can be everything from market overview to the definition of your entry and exit points. However, everything depends on you and how you choose to interpret your own trading strategy. Another important clue is to leave emotions out of the “equation”.
Introducing Forex trading discipline is not only a matter of implementing the rules of your trading strategy. Applied discipline is most of all a matter of how exact you can stay “true” to the vision of your trading strategy. Consequently it is easy to understand that human emotions need to be eliminated to the highest possible extent. In this way, the exactness of your Forex trading strategy should equal the practical implementation as much as possible.
However, eliminating human emotions can be easier said than done. In best case it requires a really strong mind with constant high awareness of your market activity. There are many examples of traders who has “played a hunch” and stories where intuition has been significant for a good performance. The case is however that in the end we will have to face the truth. This way of trading is more connected to having good luck than anything else.
How exact have you been in developing your trading strategy? When all points in any market activity is broken down into exact action points, you can consider to start being satisfied. However, the next step is the practical implementation of it all. Are you able to let your intuition and emotions come second after the true implementation of your strategy?
Discipline is just as important in trading as any level of market knowledge. Regardsless of what we think or feel, the work we have done to define our strategies must come out in front of any other feelings! In this way, your trading abilities should reach much further than covering market knowledge. In general, and very simple put, it is just a matter of staying true to your own trading strategy.