Forex trading is very exciting and the prospect of profits, freedom and personal growth stimulates the mind and our motivation. The main problem with reaching consistent and long-term success is the ups and downs of your performance, strategy, and equity curve, which cause a multitude of emotional imbalances.
As Forex traders, our concern cannot ONLY be on the results because a sloppy and improper execution of our trading plan will ultimately lead to losses. Although it is tempting to “grab” as many wins as possible, the many smaller won battles will not ensure the final victory.
It is essential that Forex traders approach trading with the same process and routine day in day out. The daily consistency in our analysis, trading, risk management, risk appetite, trade management, emotional balance, etc. creates the focus and discipline needed to succeed. This also allows traders to measure and monitor their strategies and their process.
A daily routine in fact will eventually become ‘a bit boring’ (or maybe for some of you this is already the case). A routine is where you feel comfortable with the process and you know the ins and outs of that process. And that is exactly the state of mind traders eventually need to reach.
With a routine in hand, the thinking cap can be turned off and our attention can be fully focused on implementing the trading plan. Until that routine is established, our brain will keep ‘wandering’ around. In this mental phase it will continuously be creating new ideas (but never settling for one) and many internal insecurities as well.
The mind wandering is needed at the beginning of a trading career as many elements of trading must be explored. But at one point, Forex traders need to establish and approach trading with a routine because this will allow an iron clad discipline in the markets and decrease the emotional ups and downs.
What do YOU think?
Do you agree that routine is essential or do you prefer trading each day with a fresh new approach?
Let us know down below!
Thanks for sharing and Happy Hunting!
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