Discipline & Patience-Prequisites For A Forex Trader
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There are 2 qualities that separate amateur forex traders from the professionals: discipline and patience.
Beoming successful at trading is all about finding an edge and maintaining that edge. For example, you spend countless hours to finally discover a trading strategy with a 75% win rate and 1:1 risk/reward ratio. You are confident that your strategy works. Now you must exercise discipline and patience.
Without patience you will not wait for your chosen setup to occur and will take other trade setups in the meantime. Now you are not excercising your 75% edge as you are taking "random trades".
Without discipline you may take your setup and times of the day when there is not enough volatility in the market, on bank holidays, before major news announcements, etc. Again you are not excercising the edge that you have found.
Professional traders have a high degree of patience and discipline and are totally ok if no "A+" setups come for a couple days, they will wait for the very best setup. Amateur traders on the other hand have very little patience and can't stand to not be in a trade.
Many people get involved with Forex trading because it is exciting. This becomes a curse because often trading is actually very boring. You should find your excitement somewhere else in your life and approach Forex trading with a business mindset, not as a thrillseeker.
Another place where discipline is very important is with your risk management. Professional traders may risk 1-2% on each trade with great consistency. Amateur traders may start off with 1-2% risk but then after a couple losses will often raise the stakes to 4-5% risk. Then comes the inevitable losing streak and the emotional pain of losing 15-20% or more of your account in a single day.
If you have been trading like an amateur, it's time to take a lesson from the pros and step up your game. |
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Author Resource:-
Learn how to trade forex successfully in a fx trading room with professional traders.
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By :
Alex Harper
Submitted
2011-08-24 11:35:32 |
Article From Article Mayhem
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