Forex Trading - Keeping Disciplined On The Forex Market

Forex Trading - Keeping Disciplined On The Forex Market

by Dane Stanton

When it comes to trading on the forex market, there is nothing more important that finding a strategy and sticking too it! It's so easy to get sidetracked when you hear about someone making huge trades using his or hers new secret strategy! The majority of new strategies are designed to work using outside influences, which is always going to be risky. Sure they might make a lot of money initially but what about in the long run? It's best to find a proven strategy and become an expert at using this strategy to make successful trade after successful trade on the forex market.

The Number One Reason Why People Fail In The Forex Market

You know, it's hard to say that most people fail just because they weren't willing to stick with one proven strategy, but unfortunately there is no bigger cause. I'm not going to say that trading in the forex market has nothing to do with luck, because it's not true, luck plays a huge part. We can only predict what might happen in the future, we can't be certain that it is going to up or down.

There are however, proven strategies that enable investors to first survive in the market and that's what it should all be about at first. The longer you survive in forex, the more you learn and inevitably success will follow. This is where discipline comes into play.

Sticking to one particular strategy(and there are loads, which we won't have to go through today, but you can learn about them for free all over the internet) making sure you are never opening trades that you can't afford, will give you a chance to understand how the forex market works and eventually after a firm understanding of the basic principles, you will be able to spot a good trade from a bad one just like how a mechanic spots a problem in an engine.

Be The Hedgehog And Not The Fox!

If you are aware of the story of the fox and the hedgehog you will know what I am talking about here. The fox spends day after day trying new things to catch the hedgehog. He is a very cunning animal and has the ability to create brilliant strategies, but unfortunately every new strategy he tries, he always seems to get pricked by the hedgehog. You see the hedgehog has perfected one strategy and that is whenever the fox pounces all he has to do is crawl up into a ball and as a result he stays safe and the fox gets a mouthful of spikes.

The moral of the story? Be like the hedgehog and stick with one proven strategy that works universally and become an expert at it. If it works for everyone else, then why shouldn't it work for you? Don't be the fox and jump from one strategy to another just because it didn't work the first time. The result remember for the fox was a mouthful of spikes, for you it could be much worse!