Forex trading is a challenging discipline where buyers and sellers fight against each other. When the ones are winning and making money, others must inevitably be losing, and losing money. How to get to the side of those who win in the long term? Successful trading is based on several pillars which include a trading system, high quality money management, psychology and discipline of the trader. If the set two traders of proven trading systems side by side, it is very likely that we will get two different results. Which trader will have better business results? The disciplined one or the one who only makes game of trading? Of course the former one. Today, we are looking at 5 tips on how to strengthen your business discipline.
Focus on trading, not on the money.
The prospect of money in trading is a given but it does not bring anything good. With money, trading only becomes emotional, which often make you break the business plan and trade differently from how we would really wanted to. Fortunately, MetaTrader 4 offers the possibility to monitor result in a different way than by tracking money. Set monitoring of profit and loss in pips and turn off the Terminal window so as not to see the financial movements on your trading account. Focus only on the number of pips rather than on the financial result. This idea is perfect for raising your business capital, as nothing changes for you because you are still watching the movements of pips on your account, only each pip now has twice the value.
Motivation, the method of carrots and sticks.
Set up a system of rewards and punishments. It is common to get rewarded for a job well done. Reward yourself for opportunities well traded and conversely, set penalties for unnecessary errors. It is very important to set the right values of penalties and rewards so that your motivation is real. If you choose too low rewards and punishments, you will not be motivated to comply with the discipline. On the other hand, too high rewards may be unattainable, which can be demotivating. For example, try to put a certain amount of money into the money-box for every wrong giving , for example $5. If you meet your goals within in a certain period, take out money from the penalty money-box and exchange them for a pleasant reward.
Exercises to strengthen discipline.
Various exercises work perfectly to strengthen discipline. For one week, try setting a certain goal only for maintaining your trading discipline instead of the normal trading. For example, try to trade with a clearly set profit target and the loss stop of 1:1, let us say 20 pips. After one week, check on your trading account. Do all your trades have the results of +20 or -20? Or do you still need to work on your discipline?
Incorporate discipline into your life.
Maintaining discipline in trading will be much easier for you if you are disciplined and in your life. The human brain is not predestined to disciplined and rational behaviour, which is why it is very difficult to maintain discipline. Try adding something new to your life that you are not accustomed to and keep it. Try getting up 30 minutes earlier every day, start to exercise regularly, or eat healthy and regularly. These exercise can also have a positive impact on your business results.
Try our Challenge, Mentor Application.
At this project, we put strong emphasis on discipline. This is why we have prepared a set of clear trade rules our traders must abide by. As we believe, it is the systematic approach that leads to consistent, long term successful business results. Try our Challenge free of charge for 14 days and see how the rules can help you maintain discipline. If the rules alone are not enough, we have a unique new feature for you – Mentor application. Simply set your mentor that will keep an eye on everything you have an issue with. Do you have a problem trading too much? The mentor will look after the number of your trades and notify you to take a break.