Discipline Can Lower Your Impulsive Trading

Discussion in 'General Trading Discussion' started by Dany Brown, Jul 31, 2017.

  1. Dany Brown

    Dany Brown Member

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    Most of the time, traders in this Forex market try to trade the market with their gut feeling or what their mind are trying to say. Trading the market with your impulsion will only cut your profit short. There is no better way than making your own strategy and sticking to your discipline when you are making money. Those who are successful in the financial market always follow strict discipline. They know very well that a single mistake can wipe out their entire trading account. For this reason, they train themselves to an extreme level so that they can have complete control over their emotion and trade only the high-quality trade setup.

    The majority of the traders in trading lose their money because they want to take risks and chances in forex. As many activities are happening in this market every day with lots of uncertainties, it is natural for the traders to take an opportunity and place a trade before analyzing the market trend. But there is nothing out of order in Forex and when you are trading on your impulsive decisions, you are only risking your capital. The professional traders always suggest the new trader’s use the demo account at their initial stage so that they don’t lose any real money while learning. To be honest demo trading is one the best way to develop yourself as a successful trader.

    How to avoid impulsive trading?
    Many traders have asked us how they can avoid impulsive trading in the market. Though it is very hard and it looks like a quite an opportunity to make money in the market, one of the easiest ways to get rid of your impulsive trading is by discipline. You need to follow and abide by your discipline at all costs. Sometimes you may feel like you are letting a wonderful opportunity slip through your hand, but you are only doing what is rational. However, if you are new to this market then make sure that you use the demo trading account to master the trading skills. Never start trading with real money unless you truly understand the nature of this volatile market. Being a financial instrument trader you should know that most of the traders are only losing money due to their lack of trading discipline and knowledge. So if you don’t give yourself enough time to understand the fundamentals of this industry then you will have a tough time to make a consistent profit.

    Emotions in trading
    The most common way of fighting impulsion is by trading without emotions. As money is related to your trading and you have invested real money, most traders feel emotionally connected to the market. You need to trade the market and keep aside your emotion part. The more you can analyze the market and plan your every move, the better you will be than the other traders. Though most of the time traders in the market do not say they want to make a lot of money out of one trade, it is what they are going to do and by trying to do it, they depend on impulsive trading. They think of the market as some kind of tool which they have deciphered and started trading. It is only a matter of time when they realize the market trend is changing and they close their trades on the market with a loss.

    Conclusion: Trading in Forex can be tricky when you are being emotional. Only depend on your strategy and analysis, not on your impulsive trading. The full-time trader always does what is rational. They have complete control over their emotion and they know very well that emotional traders never make money. Being a currency trader you should also read the news on a regular basis so that you know the details about the world economy. Lastly, focus on quality rather quantity.
     
    Last edited by a moderator: Aug 12, 2017 at 10:38 PM
  2. Paatrick

    Paatrick New Member

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    I completely agree. Psychology in trading probably ranks first. After all, no profitable strategy will not help you, if you trade emotionally and can not follow the rules of strategy because of emo- tions. And then also under the emotions, it's not right to evaluate your trades.
     
  3. longtermbull

    longtermbull Administrator Staff Member

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    I totally agree - rather than buying and selling shares just think as if you are buying and selling boxes, without getting any emotional attachment to what is inside. Trading on emotion is dangerous as people tend to be too impulsive.
     

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