A single trade can make or break a trader
Successful trading is all about discipline and ability to manage risk. The tricky part however is to be able to resist temptation to brake your own rules. And as you can guess situations that put you in a position to break the rules are not few on the markets. Your ability to stick to your trading plan is what will make all the difference in the long term. Actually if you built a trading plan and you are then not following through on your tasks it is even more dangerous than not having a trading plan at all.
Breaking rules is worse than not having rules at all
The thing is that once you make a rule that is supposed to lead to profitable trading that rule is not to be broken until you are absolutely sure that the rule is inefficient. At that point you would still not break the rule but rather change it and update your trading plan. If you get the feel that you may break your own rules as you see fit then you are not going anywhere. There is no way to analyze your own performance as you don’t know when you traded according to your plan and in what situations you deviated from it. Once you step away from predefined rules you are no in the no-progress zone. You cannot evaluate trading statistics if there was no strict strategy. Results become random.
The worse kind of trade is the one that made money after you decided not to follow your trading plan
Or in other words if you had a trading strategy and at some point you decided you can break the rules that is already bad but it only gets worse if the trade happens to generate profits because you are now being rewarded for your bad actions. Your mind starts to appreciate that kind of behavior and the idea that you can break rules and be rewarded is now your worst trait as a trader. Why should you trade by strict rules when you can have no rules and still generate profits, right? Wrong! You always trade by rules even if you do not realize that. Your mind is constantly evaluating your experience and generating response rules. Every time you need to make a trading decision you subconsciously evaluate the best possible action. But here is the trick – you can’t think rationally when emotions are in control. Successful traders realize that and develop trading plans when they are not under the influence of emotions.
You will always have losses, at least make them worth a while
If you acted according to predefined rules and had to take a loss you now understand how real trading feels. You deserve a pat on the back for being disciplined. Don’t begin to doubt your trading plan and don’t feel frustrated. Its all part of the game. And you just put on a great play. This is what every successful trader goes through on a daily basis. Remember that trading is all about percentages. Even if you have a 90% profit rate on your trades you still have to go and accept the 10% losing trades. Make your losses worth a while by staying disciplined.
Wishing you successful trading!
Risk Warning: The information above constitutes Marketing Communication and does not constitute Investment Advice or Investment Research. The content of the analysis represents the view of our experts on a generic basis, and do not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the analysis above has not been prepared in accordance with legal requirements designed to promote the independence of Investment Research. Readers using the above information should consider the possibility of encountering substantial losses. Therefore, UR Trade Fix Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the above analysis.” Further to the above ,Forex Trading involves a substantial Risk of Loss and may not be suitable for all Investors. Please see our Website for details regarding UR Trade Fix Limited’s Trading Terms, Policies and Offerings.Read more.