The foundation of all functional trading strategies is discipline. Without discipline, you’ll be harmed by the risks of active trading. These risks include fear, greed, and missed opportunity. Only by holding yourself accountable and remaining disciplined in this current time will you be ready to achieve your trading goals.

If you put you focus in your trading strategy before learning discipline, the process of your strategy won’t really matter. Discipline is what makes successful trading strategies possible. Discipline is why technical indicators, risk management techniques, and trading principles pay off finally at the end.

It is very easy for traders to feel overwhelmed. Once losses begin to compile, it can often be very tempting to take an early exit. Once gains accumulate, it can be very tempting to press your luck. Disciplined traders aren’t distracted by any particular price movement. They realized that their trading strategies produce net gains over-time when applied correctly.

As the foundation of trading, discipline is what is going to allow you to place your trading knowledge to good use.

3 Steps to Becoming a Trading Discipline Master:

Becoming a successful trader must require time and practice. However, there are still quite a lot of things you can do to enhance your level of discipline. When designing an efficient trading strategy, keep these subsequent things in mind:

Have a transparent set of trading discipline rules to follow— If you don’t have guidelines how will you be ready to follow them? You can’t. So, set up some rules and begin to follow them.
Start with something easy and grow your discipline — the efficient trading strategy for you is one you fully understand. Traders are likely to lose their sense of discipline when they are overwhelmed, nervous or confused. Once you begin small and start to possess success following your rules, you’ll gain confidence. Not sure where to start? Find the best trading strategies for your needs
Make Your Goal Following Your Rules – Traders want to get money! However, we need our foundation first. If you can’t build a foundation then you’ll never ever make money trading. So, until you master following your rules, make it your goal to follow the principles, then from there when it’s established then you start to tweak elements of your strategy which will launch you into profitability. Here you’ll learn on the way to fade the momentum in Forex

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Ego in Trading -Anirudh Sethi

24-May-20 07:01 pm

Anirudh Sethi

There is something about yourself that you may really not know. Something that you will deny even exists in you until it’s too late to do anything about it. It’s among the reason you rise up in the morning, the sole reason you suffer the shitty boss, the sweat, the blood and also the tears. This is because you would like people to understand how attractive, good, generous, wild, funny and clever you actually are. “Fear or revere me, but please think I’m special”. We share an addiction. We’re approval junkies. We’re all in it for the pat on the back and the gifts. The “hip, hip, hoo-rah.” check out the clever boy with the badge, polishing his trophy.

Because we are all human, we do not want to accept that we are wrong about anything, including trades. The ego wants to uphold a perfect version of ourselves allows nothing more but successes not failures. Many traders collectively lose many dollars trying to guard the ego’s version of reality. Our goal should be to trade without ego.

“The greatest enemy will hide in the last place you’d ever look.” Caesar 75 BC

You must recognize what’s keeping you from taking your trading to another level. The majority of the time, it’s your ego. How many times have you made a great trade and walked away with your chest puffed out thinking ‘I am the greatest trader in the world?’

“The only way to get smarter is by playing a smarter opponent.” Fundamentals of Chess 1883

The market always reminds you the person in charge. Try to always use same way to approach each trade, ditch each previous trade when entering a current one. Reset your mind and expect to lose money on each trade, and this could assist you recover from the super-trader ego after a pleasant winning trade! Ego must be left out of your trading. Check your ego at the door, have a stop loss, and stick with your plan.

The ego may be a person’s sense of self-esteem or self-importance. The ego is a mental construct that can be both on a conscious and unconscious level. An ego is that the self-concept that an individual tries to guard and keep safe from pain and destruction. A trader has got to trade the maths and their own trading system and abandoning signals and their trading plan in favor of their own ego may result in stubbornness, self-delusion, and big losses.

Most market predictions are ego based. A trader wants to be ready to say they called a top or a bottom or had an excellent stock pick. Signal and system-based trading may be a path that removes the necessity to predict you simply
Stubbornness is an emotion that flows from the ego as it does not want to be proven wrong. Many times, this results in letting a losing trade still run against a trader. Egos do get trouble taking stop losses because they hate to be

Egos lock into being bearish or bullish and let their opinions lead their trading. Following the particular price trend creates better odds of success than having an opinion on what should happen
You should not let trading consume your entire life. The markets should be just one of several belongings you neutralize life. A diversified life outside the markets with friends, families, hobbies, learning new things, and staying healthy will assist you keep perspective during losing streaks and draw downs in trading
A profit and loss statement can not define your self worth. Your profits are more of a mirrored image of whether the worth action is conducive to your method currently not whether you’re an honest trader or not. Your egos have got to be determined by whether or not you followed your trading system with discipline, consistency, and risk management.

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Emotions In Trading -Anirudh Sethi

24-May-20 06:51 pm

Anirudh Sethi

For many traders emotional trading is a problem and it stops them from being consistent in the market. We see what causes emotional trading in this article and I share six steps to greatly help reduce it, or stop it entirely.

Emotions in trading have always been one of the main causes of losses, and at the same time − the main driving force for all types of money. Remember the classic idea: buyers push the price up because of greed, and sellers sell because of fear of losses?

It still works perfectly in any market.

Popular training materials on market trading almost do not pay attention to managing emotions. This is understandable: any broker is the first participant in the trading process, which is vitally interested in having you leave your deposit to the market.

That is why most newcomers, especially those who passed the super-fast and super effective training in various brokerage kitchens, remain psychologically unprepared for trading. And even good technical training will not help such players save their money.

Assessing and reacting to market risk is one of the most important things you’ll have to do as a trader. Sadly, human being as a whole are so mediocre at this task, investors and traders reliably make decisions that economists consider “irrational.”

So obviously these are commonly more referred to as emotional trading.

Six Steps to Help You Stop Emotional Trading

Financial markets are a by-product of modern era and, in the grand scheme of things, our brains have evolved over millions of years for survival out in the open. They haven’t had the time to get good at making sound and perfectly rational financial decisions.

We have brain processes; an emotional one and a logical one that are constantly competing against one another for our future expression in the market. And normally, for the trader that has little to no market experience, who trades money they can’t afford to lose, or who has a short fuse overall, the stage is set for an incident.

But also more seasoned traders tend to make emotional trading decisions that they consider stupid in hindsight. Perhaps less often than inexperienced traders do, and with minor consequences, but those errors do happen.

Many a times, although we know with the logical part of our brain that we will get better results if we follow our trading rules, so many of us do exactly the opposite, despite clear knowledge of what we should do.

We remove stops, we cut winners short, we go in with too big of a size… I mean, we’re clearly

not purely rational beings ― and we can’t be because that would make us robots, not humans.

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