Discipline is an integral part of success for any person: without self-discipline, organization or concentration, it is impossible to achieve the desired result. This is especially true for trading in the international currency market, because every beginner, before becoming a professional, needs to go a long way, full of pitfalls, obstacles and difficulties.
As for the profitable activity on Forex, the following factors will be its main components:
1) self-discipline;
2) a clear understanding of what is happening in the market;
3) emotional balance;
4) valuable knowledge possessed by a trader. In reality, the very fact that the discipline is leading in this list is not accidental. The main reason is that in trading on the international forex market, the ability to strictly adhere to certain rules and established standards is a guarantee that a trader can not only «gain a foothold» in the market, but also achieve effective financial performance at the exit. In Forex (as well as in other serious business), it will be extremely difficult for not serious and undisciplined people to withstand the competition and prove themselves. So what is this discipline built on?
First of all, on the realization that a trader must learn not to waste time in vain: to gain the necessary knowledge, gain experience in order to learn not only to experience losses, but also to make a profit. Having understood this, any stock trader will eventually be able to:
1) minimize all risks and financial threats;
2) make deliberate decisions without being influenced by emotions;
3) follow a clearly marked course, while adhering to the rules of certain tactics. As for the discipline itself, there are certainly many factors, taking into account which we can improve our level of discipline.
The most important aspects include the following:
1) control over their actions: the most important thing is to show responsibility for making significant market decisions;
2) adhere to the rules of risk management: without this, you can forget about a successful career as a trader;
3) use only well-proven strategies and tactics of the foreign exchange market that have been tested on a demo account;
4) for trading, you should choose only well-known and proven currency pairs, avoiding exotic tools that are unfamiliar in practice;
5) have an idea of such an important aspect as the psychology of the forex market;
6) do not forget to keep a trader's diary, in which you should record your positive trades and failures, and work on mistakes.
7) carry out a regular analysis of their work, assessing the effectiveness of actions;
8) check published news and economic news. A separate and important point for a trader should be planning - that component, without which it is simply impossible to achieve success in the Forex market.
As for the plan, these options can be: -day, which helps to improve the trading results; - the study of techniques and tactics, with the help of which we can significantly expand our theoretical base; - testing the selected trading system: experiments allow you to find its vulnerabilities and improve them.
Market psychology The most popular is the chaotic type - crowd psychology. This version of the psychology of the Forex market implies three significant points:
the exchange literally freezes before the publication of one or other important events. A large number market participants are trying to stop their trading as soon as possible, waiting for further developments. This is one of the most dangerous moments in spontaneous trading.
Excessive speed of action Having discovered a rather interesting trend for themselves, many players instantly and unjustifiably decide to buy. If the number of people interested is very large, then all this can lead to a trend reversal, which is why in this situation (when the very first signals about trend changes appear), it is best to close the deal. Another option is to wait: the game of «waiting» makes it possible to determine the level of the trend's prospects.
Option number three - panic. Panic is the most dangerous type of market psychology. The most optimal option for a trader is to act carefully and close all positions during a period when such sentiments rule the market.
A number of useful tips for the player:
1) feeling the approach of stress or panic, it is better not to wait, but to immediately close positions. Be guided by rationality and reason - these are fundamental to success.
2) take time to rest from trading: this way you unload your brain;
3) try to regularly read the news and make a detailed analysis of them. This is a must for any trader. And of course, strive for excellence by constantly learning new systems and practicing new techniques.
Good luck!
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