Upon further experience gained in trading Forex, there is notice of the underestimation of the most fundamental aspect, discipline. It is good and well to have the skill and ability to trade, anyone with the ability to learn can do that. However, the ability to master the discipline aspect of trading is a greater challenge. This entails the traders attitude towards the markets, response to losses and gains, which strategies to implement, when and how.

The overall psychology of the trader is paramount to his success in trading. This Forex article serves to define some of the attitudinal hindrances that prevent traders from entering the markets and to find out how to be a more disciplined trader, even if that means relying on Forex robots.

Attitudinal Hindrances

It is not an anomaly to find experienced Forex traders show reluctance to trading the markets at times. It is understandable that where there is risk involved, traders would rather avoid it. The aversion to risk exacerbated by losses or other market factors could lead to traders taking on attitudinal hindrances; flaws in their attitudes towards trading that hinder their success in trading. Their attitudes towards trading the market may require some reinforcement. John Forman of Anduril, Inc. suggests some of the perceptions carried by these types of traders that excuse themselves from trading. Remember, these are all excuses.

Risk:

The markets generally compose a certain level of risk, as do all things in life. However, the markets are as risky as you make them. An educated analysis coupled with steps to minimize risk will effectively reduce your risk. Therefore, to say that the markets are risky as reason not to trade is unfounded as risk can be minimized.

Time constraints:

Many traders attribute their exit from the market to the lack of time and the time differences in trading countries of various exchanges. It’s important to note that the advantage of trading Forex is that it’s a 24-hr global exchange with different exchanges opening and closing at different times. No other exchange does that. Trading currency pairs when both the exchanges are open simultaneously is advantageous in the increased volume in trading. This increased volume creates more opportunities as more buying or selling pressure is created.

The lack of capital:

This is an excuse used by many and I may admit it remains a challenge for some. However, the entry point into the financial markets has been lowered as brokerage firms accommodate small trading accounts. Furthermore, Forex brokers take their cut from the spread of each trade and administration costs which are, in the bigger scheme of things, minimal.

The complex nature of the markets:

The markets are as complicated as you make them. Admittedly so the technicalities of advanced trading such as algorithmic trading, Forex robots etc. may be complicated, however the analysis of the markets and implantation of trading strategies is not rocket science.

Disciplined trading

The ability to remain disciplined in one’s trading is a difficult one to master as it involves the mental as well as the emotional aspect of the Forex trader. Discipline entails the implementation of one’s trading system despite recurring losses and keeping at it afterwards. The above excuses are those of traders who give up after incurring consecutive losses. Discipline can be a general characteristic trait of some traders, but it is also a trait that can be developed.
An effective way of developing discipline is by keeping a trade journal. A trade journal is a record of all your trades, successful or complete failures. It allows you to identify bad habits that lead to losses, potential strategies to make successful trades, gaps or holes in your strategy and other factors of your trading. It assists in developing your strategy and learning from your mistakes.
Larry Pesavento of The Trading Tutor states that the contents of your trade journal would be the following:

    • A record of wins and losses
    • Notes on each trading plan
    • Notions on daily distraction of trading
    • Mistakes made and potential opportunities
    • A record of each trade made and why
    • Overall results of trading

It is important to track the growth numerically over a certain period of time. This way you can measure the improvement of you trading but also effectively realize your mistakes and improve on them. Remember, he who doesn’t learn from their mistakes is officially stupid.
These efforts should seek to improve the mental aspect of you trading and minimize the emotional aspect. The factual analysis of one’s trading is more effective since the progress is assessed numerically and factually. Increased effort in becoming better at trading is a process in which one begins to trade in a disciplined manner.
For those that struggle with discipline in the short and long term, using a Forex expert advisor can help insulate the issue and provide emotionless reliability.