Yes, I'm absolutely convinced, it has a paramount importance in everyones trading.
Let me get an example for you.
Suppose, a trader found an allegedly winning system. He brought it to MT4 and back-tested it. the system promised high yields. Our hero is ready to trade it.
But, although the factor of system potentials was positive, there is still one problem left. It is a human factor.
Trading is done by humans, unless a trader uses an automated system... this article is not for such traders, they should be fine. Do read on if you trade manually.
Let's go back to our example. Back-testing results were promising, but how smooth was the system performing? Did it require some nerves from times to times to hold a position open? If so, how prepared is a trader to trust a system and follow the rules without involving any emotions.
Discipline is a difficult part of the trading. It is most important part and it is most crucial part in trading success.
Many novice traders pay very little attention to discipline recommendations given all the time by experienced traders. But inevitably every trader comes to understanding the word "DISCIPLINE" in Forex.
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2 comments:
Absolutely agree. Discipline is paramount in Forex.
I have recently learned it my way. Had quite large losses due to bad trading habits, where the worst one was: Not following the rules and trading a lot.
Regards,
True Forex Trader
http://trueforextrader.com/
I don't know, everyone is talking about discipline.
But, say, why would you stupidly stick to your system when the market is showing, for example and aggressive turn. Why not exit immediately.
Or, out of a blue moon (a bit exaggerating here, but anyway) price moves in your favor sharply bringing decent pips along. Why not lock in such profits immediately instead of waiting for your "slowmo" system to react or even worse, wait out and allow the market to recover and cancel this sudden large gift...
Imho, discipline should be reasonable..
Alonso
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