In 2010, the year forex was first introduced to me, I'd see it as something that is very easy to accomplish as I monitor prices of currency pairs move up and down on an Mt4 platform. In my poor thinking I believed, only intelligence is needed to key in to the market since price goes up and down. I presumed that if I put a buy as price goes up, i would take my profit when I see it coming down. I was wrong in that thinking. No!! The world 4 trillion dollars market needs a PLAN.
Something happened to me that was really really strange at that time. When I put a buy position and the market went bearish I'd refuse to close my trade on a loss, so I sit on my couch waiting for it to comeback, go bullish and give me profit. I prayed so hard....sadly, it never did. I lost the whole of my real money equity.
Suffice to say, PRAYING after we put a trade might look devout enough, but the sad truth is, prayer is never a tool we need for a win in the forex market. Fours(4) years after that moment and struggling with full-time employment and part-time trading on demo and fx training, I have acquired the tools to counter this misfortune - FX MONEY MANAGEMENT, BROKER FRAUD(Reputable Market Maker), TRADING EMOTION(PSYCHOLOGY), REWARD/RISK ASSESSMENT(Ratio), CLUMSY TECHNICAL ANALYSIS (Keep is simple), ANTICIPATE FUNDAMENTAL NEWS(Follow News Calender), SUITABLE LEVERAGE and DISCOVER THE TREND(Focus on the bigger action for longterm profit) strategy.
I have named them for myself and graphed it to my understanding: "THE DISCIPLINE CURVE". I hope it will benefit all of you my friends.
For further explanation, please kindly follow my blog and add question on the comment area or message me directly.
** I wish you all success in this beautiful fx community.**
Remember the key components of the 'DISCIPLINE CURVE'
(1) REPUTABLE BROKER &
(2) MONEY MANAGEMENT.
THE ELEMENTS OF THE TWO COMPONENTS OF THE DISCIPLINE CURVE
A. MONEY MANAGEMENT:
- Ensure suitable leverage is set
- Set(determine) your daily loss maximum limit on your EQUITY
- Identify the Market current Trend direction (Use multiple time-frames to determine)
- After identifying the trend, determine your certainty on trades with Reward/Risk assessment and apply it
- Ensure you have SL, TP or TS on your trades (SL - Stop Loss, TP - Take Profit, TS - Trailing Stop)
- When you lose, don't let emotion lead you (I have coined this saying this way "Trade loss begets even greater losses"). My experience had shown that greater amount of losses occurred because we didn't accept the first loss kindly. So when you lose, accept the loss (losing in fx trading is part of a win, although I mean small losses), don't DOUBLE trade lot size on a new trade to recover back your loss, more often than not, you set the table for more losses.
B. REPUTABLE BROKER:
- Protects your equity (Equity - is your trade money in the trading account)
- Charges fair trading fees and commissions
- Offer trading leverage - no hidden leverage adjustment
- Make the trading platform understandably simple
- Ensure that trading platforms has real-time chart options available.
- Offers Demo accounts (DEMO - trading practice accounts)
- Offers Market DDD/ECN option
WISH YOU PROFITABLE TRADES
My Drive Acronym ( TREEPP - Trade | Entry & Exit Limit | Position for Profit )
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I am your fellow loyal Community Associate... JAMES
