Tuesday, April 24, 2012

A Lucky Trader Vs A Discipline Trader

January 22, 2010 by  
Filed under Forex Tips

I decided to write this post after receiving an email from one of my blog reader saying he has decided to give up on trading and has closed down his trading account.

In his email, he says that he always has this problem of keeping his profit. He will have a few days of profit where he makes money but he will then lost all his profit the next day. So what really is the problem?

This gives me an idea of writing this blog post on ‘A lucky trader vs. A discipline trader’.

What is a lucky trader?

Some of you may have experienced this before. You may have days where you make a few wins consecutively but you did not trade according to your forex trading plan. This gives you a thinking that you are in fact an export in trading and can already make a living with it.

What usually happen is you find yourself losing all your profit within a day of trading and you started to realise that you are not that good in fact.

A lucky trader is a trader who does not have much trading knowledge and trade based on instinct. This group of trader usually do not stick to their trading plan and place trade as and when they think is okay.

However if you want to stay long in this field, you must be able to generate consistent profit and this is what a lucky trader is not able to do.

What is a discipline trader?

A discipline trader usually spends time to learn the rope and will practice their strategies and refine them until they are able to generate consistent income for them.

This group of traders will always have a trading plan on hand and they will always trade based on their plan. They can go without a trade for the whole day if they do not see any setups that are stated in their plan.

I am not saying that this group of traders will not have loss trades but even when they have consecutive losses in a row. As long as they stick to your plan, they know that the winning percentage and win loss ratio will be able to make back the losses and eventually put them to profit.

So what type of traders you want to be and what you become will be determine by your choice.

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