Discipline helps the trader overcome two types of emotions encountered when
trading: Fear and
Greed.
Discipline
ForexThinker.com
Manage risk. Trade better.
Simply, discipline or self discipline is the effort and determination of a
trader to adhere to:
1. A trading system
2. Specific money management rules he/she set for
trading that system.
First, adhering to each and every buy, sell, and hold forex trading signal
generated by a thoroughly tested trading system eliminates fear of
establishing, maintaining or exiting a position in the forex market.
Further, abiding by a forex trading signal does away with greed that often
causes foreign exchange trading pitfalls resulting from getting into a
position early because of impulse to by or sell, staying in a position
too long hoping to accumulate more profits and eventually exiting it late,
sometimes turning a good trade into a losing one.


Second, adhering to preset money management rules of a thoroughly tested
trading system eliminates the greed to make a larger profit by putting too
much cash (overtrading) in a single position that might become a losing
position. Adherence to money management rules also eliminates fear
that can result in investing less money into a trade that might eventually
be profitable.
Self discipline is an an ingredient of successful foreign exchange trading.
It is a valuable quality that can be developed and learned through currency
demo trading and actual trading.
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ForexThinker.com currency trading formula:
money management + viable trading system+ self discipline=
Successful Currency Trading
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Q: What can
be a costly
mistake for
a trader?
Ans: Placing
an incorrect
order.
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