Everybody has a different definition for discipline. Most people think that discipline means seriousness in doing something. This is true but discipline has a wider meaning when it comes to forex trading.
In forex trading, discipline means following your trading system rules strictly and precisely. Over 95% of forex traders lose, not because they do not have a good trading system or they have not learned the techniques. They lose because they fail to follow their trading system rules. They lose because they have no discipline. When you ask them about the techniques, indicators and systems they use, they explain very well, but when you ask them about their trading performance and whether they are profitable or not, you will see that they are not profitable yet.
An undisciplined forex trader may be luck enough to make money trading currencies in theshort term. Still, the odds indicate that they areasking fortrouble to appear in the form of undesirable losses if they persist in losing theirtrading discipline on a regular basis. Losingdiscipline when it comes to taking profits maynot be too traumatic for a trading account, aslong as a trading position is closed out beforeany losses start to accrue. Of course, the main
risk undisciplined traders take is when it comesto closing out losing positions, which reallyneeds to be done as soon as the losing trade isrecognized as unlikely to succeed. Without thediscipline required to cut such losses promptly, a
trader can soon go broke, so it makes good sense to maintain discipline whenever trading in your Forex account.
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