Forex trading is a never-ending battle where buyers and sellers fight against each other on a day to day basis. In order for ones to win and make money, others must naturally lose money. How to get on the side of those who win in the long run?
Successful trading is built on several basic pillars, including the trading system, quality money management, psychology and the discipline of the trader. If we put two traders side by side with a proven trading system, it is very likely that we will get two different results. Which trader will have better trading results? The one who is disciplined or the one who takes trading only as a game? Of course the first one. We will look at 5 tips on how to strengthen our trading discipline.
Focus on trading, not money.
The vision of money is the main driver for most of the traders in trading, but it does not bring anything good. With money, emotions enter trading, thanks to which we often violate the trade plan and trade differently than we really want.
Fortunately, MetaTrader 4 offers the ability to display the trading results in a way other than cash.
Set up the display of profits and losses in points instead of in cash. Looking at pips instead of money might help your emotional attachment to money in case you are in a floating loss.
Focus only on the number of pips, not on the money.
You will appreciate this idea when increasing the traded volume. When you are monitoring the movement of pips on the account, only now one pip has a bigger value.
Motivation, sugar and whip method.
Set up a system of rewards and punishments.
It is common to be rewarded for a job well done.
Reward yourself for well-traded opportunities, and set penalties for unnecessary mistakes.
It is very important to set the right values for punishment and rewards so that it is a real motivation.
If you choose rewards and punishments too low, you will have no motivation to follow discipline.
Conversely, high rewards can be unattainable, which can be demotivating.
For example, try to put a certain amount of money into the money box for each mistake, eg 2€.
If you meet your goals for a certain period, Reward yourself from the penalty box.
Exercises to strengthen discipline.
Various exercises work perfectly to strengthen discipline.
For one week, try to set a certain goal instead of regular trading only for adherence to discipline.
For example, try trading with a clearly set profit target and a stop loss of 1: 1, say 20 pips.
Analyze your trading account on a weekly basis. Did all trades have a result of +20 or -20? Or do you still have to work on your discipline?
Incorporate discipline into your life.
Following trading discipline will be much better if you are disciplined in your life.
The human brain is not destined for disciplined and rational behaviour, so it is very difficult to follow discipline.
Try to set something new in your life that you are not used to and follow it.
Try to get up 30 minutes earlier every day, try to start exercising regularly, or eat healthy regularly.
These exercises can also have a positive effect on trading results.
Try our Challenge and Mentor app.
At FTMO, we pay great attention to discipline. That is why we have prepared clear trading rules that our traders must follow.
It is a systematic approach that we believe leads to long-term consistent trading results.
Try our 14-day Free Trial and see how the rules help you in your discipline. If the rules alone are not enough, we have a unique application for you - the Mentor application.
Simply set up your Mentor app to look after everything you have a problem with. Problems overtrading? The Mentor app monitors the number of your trades and warns you to take a break.
More information about the Mentor application can be found here.
Don't you have discipline problems any more? Then accept our Challenge and become a trader in our Proprietary Trading Firm. Disciplined and serious traders are welcome to trade our FTMO Account.