Ask any trader: what are the key drivers of success in trading? And the majority gives to you two – discipline and a method. It can seem obvious. Many beginners think: why all of them repeat about discipline and a method? I know that the discipline is important to avoid the big losses and the method will allow me to get profit regularly. And it in general is true. A problem that discipline in trading is a thing absolutely concrete. After all you not simply stand apart and observe an event in the market. You are a participant of this ordered chaos. And simultaneously with dynamics of the market there is your own dynamics – how you distinguish a situation in the market and react to it in the form of your transactions.
I will explain it on an example.
The scourge of the trader is sensation that the market passes by it. He feels badly because does nothing, and the market “rushes” by it. If it proceeds long enough, the trader, as a rule, doesn’t maintain and “jumps” in the departing market, just while the market starts to brake and be developed in an opposite direction.
The trader starts to be nervous: Well why IT always happens with me?! Then he starts to execute himself by the most different methods. And the main from these methods is a loss of own money. Loss of money is the heaviest charge which the trader uses against himself.
But let’s think: and for what he reproaches himself? That doesn’t observe discipline and doesn’t follow a method. Or, if to reject all peel and to look in a root, – that the trader gives in to pressure of crowd and ceases to be oneself. Remember, the basic lines of the market are speed of movement, unpredictability and other is basically dynamics and crowd psychology. And the crowd psychology always destroys discipline.
And one more. The market is and will be always. You aren’t present. Especially if you will lose all money. From these simple reasoning a step to understanding of critical importance of a method is knowledge and disciplines and knowledge in operation. Remember that the crowd always takes away from you independence. In trading it inevitably comes to an end loss. Only the method helps you to separate from you crowd and doesn’t give the emotions to take control over you. In such statement the discipline is simply mechanistic realization of your method.
Let’s look at it under a following corner. We will admit, you have a method, but there is no discipline. It means that you under the influence of various emotional and any other factors, as a matter of fact, any way deviate from the actions dictated by a method. Thus, you in practice implement certain other – or, more precisely, a new method. Each of these new methods can be separately completely not bad (and even, most likely, all these methods simply excellent). But it is possible to learn and prove it only at regular their disciplined application. The variant of casual realization selected by you let even fine a method is the warranted loss. That is why I once again speak: use a method and use it constantly.
If you want to participate in forex trading must start from learning the basics of currency exchange market to make sure you do not have problems with this industry.