Forex

This question was sent to me from one of our students:

I know you must get tired of telling us to be disciplined, but discipline seems to be my major problem and from others I�ve contacted it is their major problem as well. So please keep telling us about it and maybe one of these days it will sink in.�



Very well, here we go again. You must have the discipline to carefully plan your trades. You must be disciplined in religiously following the plan you have made for a trade. Once you have closed your position, you should record everything about the trade. Write down where you wanted to enter the trade, what you expected out of the trade, and what you actually did get out of the trade. Make sure to include notes that will help you learn from the trade, stating what actually took place once you entered the trade. Explain why the trade was a winner or a loser. If you keep detailed records, you can learn from past trades and increase your chances of recognizing your strengths and weaknesses. If you stray from what you were doing when you were winning, your records will help you to find your way back. Build on your strengths and stay away from trades in which you have demonstrated weakness.



I know for a fact that my discipline in executing each and every trade according to my trading plan has been the secret to my success. If you want to improve your trading, what you need to do is very simple. Before you enter any trade, think that you will have to explain this trade to the world in a case study format. You have to explain the reason for entry, your risk management guidelines, and why you exited the trade. If you can truly do this, I believe that you can enjoy the same type of success I have enjoyed in this challenge.