The first point you need to understand as part of you forex education is your success will not just depend on your method but your discipline to execute it. Most traders can't and lose and this is because they don't understand that discipline can only be acquired, if you take on traits that are not acceptable in normal society.
Discipline in forex trading means - you have to accept that you are going to need to act in a way that would normally be seen as acceptable in everyday life. People find this hard to do and some explanation will make this clearer.
1. Be a Loner
Man is a pack animal and since stone age times we have sought safety in groups - they make us feel safe, wanted and accepted. In forex trading however if you run with the pack you are going to lose, as 95% of traders do and thats a fact.
When man gets in a group he runs with the herd and the herd is always wrong in forex trading, as you are infleunced by the emotions of the crowd.
You need to be a loner and not listen to others - don't share your opinions with others and don't let others influence you. You're on your own - but that's the best place to be in forex trading and could make you a fortune.
2. Break & Make the Rules
You will hear lots of common wisdoms spouted in forex trading and do you know what?
Most of them are wrong.
This again goes with the fact the majority of traders lose.
In life were used to order:
We stop at red lights, don't drop litter, don't drink and drive etc or we know what the consequences will be - our lives are ordered for us.
Forex trading is different we get to make the rules and they will decide our financial destiny, as there are none to start with.
The forex market is chaos, an all powerful force, moving as when it wants and only it can be right and only the trader can be wrong.
You need to create a set of rules to work with it and earn your living.
You're a bit like the captain of a ship - the ocean is all powerful but you can make a living from it.
You can navigate it correctly and make a living or you can drown the choice is yours.
Most traders cannot take responsibility, cannot make their own rules and follow the herd, news wires gurus, or sure fire trading systems and lose.
3. The Work Ethic Doesn't Apply
In most jobs the more hours you put in the more you get out in terms of reward - not so in forex trading, you only get rewarded for being right and that's it.
You can spend 20 minutes a day or 5 hours - but that will not influence how much money you make.
Many traders work hard but they don't work smart they learn lots of information and lose - others work short periods work smart and win.
4. Most Traders Can't Accept Big Gains
This may sound odd but it's true.
Traders hit a trend and then rather than follow it want to snatch the profit.
Why?
Because they think it's too easy, they haven't put enough effort in and it really won't run on - but it does and they snatch it early, before it gets away.
In many instances they can't believe they can make a huge profit for so little effort or they simply don't have inner confidence in their ability and these traders let huge profits get away all the time.
Spotting big trends is easy, holding them requires huge mental discipline.
So if you learn one thing from your forex education, learn that it is not hard to learn a method but it is hard to learn the discipline to execute a method.
Discipline is hard because it sets us against the market on our own and makes us responsible.
Running with the pack, listening to the news or a guru won't help - you're on your own and most traders simply cant accept this fact.
Of course if you accept the above, take responsibility for your actions and understand yourself, you can earn huge rewards.
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