Discipline is crucial for the currency traders in Forex. To maintain quality executions of the trades, it is necessary to be a disciplined trader. But you need to accept it from their heart. They must commit to the trading business and decide on a proper trading approach. Otherwise, the approaches will be wrong and the majority of your position sizing will bring losses. There are multiple opportunities in the markets every day for a trader. But without sorting out a proper plan for the trading business, it is not possible to trade efficiently.
If you think of 3 or 4 trades a day, it has to be maintained. It is possible when you will use price correlation and trade with multiple instruments. For example, you can easily execute two trades with USD/JPY and USD/CHF currency pairs. As there is a matter of price correlation present with the fundamental analysis, the traders can easily get multiple opportunities. But it is necessary to get some discipline in your trading business first. We will discuss more on how to improve discipline in your trading business.
Use a daily trading strategy
To ensure a solid trading business with discipline, you need a proper trading method. Among the four, (scalping, day trading, swing trading, and position trading) you need to select the right one for you. Majority of the rookie traders would like the short term trading processes. We are not saying the scalping and day trading is bad for the trading business. You will just have to prepare a proper trading strategy which complements the idea of short term trading.
Using simple risk exposures with a 1% risk per trade strategy is good for the trades. Afterward, you also need to improve their market analysis strategy to ensure proper executions. Simple concepts like multiple timeframe analysis (for example, hour chart, Four hour and daily charts) is necessary to understand the market condition and volatility. Prepare the perfect plan which suits your trading performance.
Define the proper trade setups
We have already discussed the risk exposure setup for the trades. If you can follow the 1% risk per trade strategy, it will already keep you low with the investment. You can improve the quality of trading even more with proper leverages. Some investors in Hong Kong may think of it as a chance to trade a higher lot size. Being a novice trader in Forex, it is necessary to be safe with the trading capital. With your trades, you will need to keep the money management strategy the same as 1% risk per trade. The actual investment in the trades needs to be lowered down with decent leverage.
For the rookies, it is good to stick with 1:10 for each trades. There are more to the trades than just risk exposures. You need to use stop-loss and take-profit based on the position sizing of the trades. It may seem hard for the novice traders but with a proper plan, everything will be easy. You can easily define proper position sizing and stop-loss using proper risk exposure.
Trade without hesitations
When you have the plans and risk management ready for the trades, there must not be any hesitations. No traders should mix their emotions with the trading business. If it happens, the performance in the business will not be good at all. Just plan to trade regularly based on your preferred trading method. If it is set and you have a proper trading routine, go for execution based on the perfect market condition.
If there are no good opportunities to trade for, you would not need to execute any trade. Only the trade setup, trading plans, and money management will count for a reputed and profitable trading business.