fbpx

Online Forex Currency Trading - How To Boost Confidence And Discipline

Photo by Clique Images

The Challenge

Consistently profitable online currency trading requires both confidence and discipline to first achieve and then maintain a reasonable level of success. For virtually all traders, these two aspects of trading are responsible for their success or lack of it: having confidence as a trader, plus the discipline to stick to their Forex currency trading system.

Most traders that struggle with their discipline do so for a very simple reason and this is something that can be very easily addressed and rather quickly.

Ask any frustrated or struggling trader what their biggest problem is and it will boil down to a lack of confidence and / or discipline in one form or another. Traders who have both are the ones the that are doing fine and enjoying their trading.

Even the veteran traders will tell you that the primary reason for any rough spells they have occasionally experienced were from when they had a lapse or breakdown in their confidence or their discipline, but once they got it back all was well.

So how do you go about building these two emotional pillars for successful currency online trading? Or regaining them if they've waned?

The 80/20 Solution

One of the fastest and most effective ways to give yourself that boost is to intentionally create a disruption in the unsuccessful pattern that has been established. Now this applies whether you've known success and temporarily lost it or if you haven't found it yet.

The most powerful way to disrupt the pattern is through stepping back and making an assessment of your current day online trading. Now, this doesn't have to be a lengthy or monumental task. There are two parts to this process and it generally follows the 80/20 rule with which you're already familiar.

Good news for you is that the first part is the 20% of your effort that will yield 80% of the results. Even better is the fact that you can do this within the next hour or two and see results that fast. Here's what you do:

Step 1. Effort = 20%, Yield = 80%

Step 1, part 1 is to take your recent trading results and run your metrics on your current trading. So which metrics are going to give you confidence and discipline-building information?

• Your real winning percentage
• Your actual profit-to-loss ratio
• The true size of your average winner
• The true size of your average losing trades
• Your actual number of winning trades
• Your actual number of losing trades
• Your REAL ROI from your trading efforts in both time and $
• Your projected annual income from your trading – based on real numbers from your current trading

So how does this help with your confidence if the numbers don't look so great? Especially if you haven't yet experienced a level of success that you desire?

Well, very specifically these numbers give you a very clear reference point to work with regarding the factors in your trading that make the bottom line what it is. Rather than going on hope and wishful thinking, you now know the particular aspects of your trading on which to focus your efforts – a realize results. It brings a great deal of clarity to the exact direction for you to take.

Just this simple step alone with give you a substantial boost, and part 2 will really bring about a transformation.

Step 1 Part 2.

In this part, you simply back-test your system (whatever it is) very specifically according to the rules of the system using recent historical market data for the markets you trade.

You then run the metrics and compare the two. This information is incredibly powerful in two ways for building both your confidence and your discipline to stick with your system. Here's how this works for you.

By back-testing your system with historical data, this can give you a very clear measure of what your Forex currency trading system is capable of delivering for you. If your current trading is not delivering the profits that you want, you need to know if the problem is with the system or if it in your execution of the system.

If your current trading results are comparable to the back-testing results, then you know immediately that you need to take a closer look at the system you're using.

If your back-test results are good, but your current results with your system are not, then you know that you need to focus on your execution.

Most importantly, if your system doesn't back-test well, then you know straightaway that you need to consider changes to the system you're using, either a new system altogether or changes to the one you've got.

Directly for confidence and discipline, if your system tests well, then your confidence in it should go way up, along with your discipline to stick to it – because you are providing PROOF to yourself of its capabilities and limitations and with real numbers.

Plus you can see its limitations and more easily get through short losing streaks and draw-downs while maintaining confidence in your system, thus making the discipline part of sticking with it much easier.

Step 2. The More Intensive Process

If you have gone through the process in Step 1 and find that your system is good but your execution is where you need to focus and you need assistance working through other possible emotional management issues, then you need to seek out resources specifically for finding the core issues to address. Go to Inside Out Trading for resources specifically created to help you with these.

In conclusion, confidence comes from thorough understanding and successful experience. Once you have a system in which you can have confidence, then the discipline to stick to it gets much much easier.

Analyzing your current trading then back-testing your system can provide a great deal of confidence and thus make sticking to your system considerably easier by knowing the particulars of how it makes your bottom line what it is and what your system is capable of delivering.

ZEW-Gutachten: Crowdworking in Deutschland 2018: ...
Household and Family Projections, Australia

Related Posts

 

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/

Quick Post

What would you like to share today?
You can also favorite these post types to have quicker access
Photos
Files
Link
Status
Photos
Files
Link
Share and stream what's new to our social channels...
  Add photos   Click or drop photos here to upload.
Pending Preparing to upload... Uploading... Upload failed. (see details) Upload completed.
( left)
Add files Click or drop files here to upload
Type a hashtag to start searching for tags
Keyword does not match any tags
Type a name of your friend
No friends found by that name
Keyword does not match any emoticons
 
     
 

Broker Search

Latest Spot Rate

 
08 August 2020
Key risk events today: Limited. (Previous analysis as well as outside sources – italics). EUR/USD: Weekly gain/loss: +0.07% Weekly close: 1.1783 Weekly perspective:...
08 August 2020
SHENZHEN, China, Aug. 8, 2020 /PRNewswire/ -- ATIF Holdings Limited (Nasdaq: ATIF, the "Company"), a company providing business consulting services and multimedia services in Asia, today announced that it received a written notice (the "Notice") from...
08 August 2020
OANDA Market Insights Podcast (Episode 124) - MarketPulseMarketPulse Home/Brexit/Earnings season/Market Pulse/Multimedia/Non-farm payrolls/Podcasts Share 0 Jazz FM Business Breakfast presenter Nick Howard looks back on the week’s business and markets...
08 August 2020
Key Economic Events Monday 10th August UK TimeCountryRelevanceIndicator NamePeriod02:30China (Mainland)HighPPI YYJul02:30China (Mainland)HighCPI YYJul03:00China (Mainland)HighTotal Social FinancingJul07:00NorwayHighConsumer Price Index MMJul07:00Norw...
08 August 2020
TORONTO, Aug. 8, 2020 /PRNewswire/ -- Canaccord Genuity Group Inc. (TSX: CF) (the "Company") provides an update to its shareholders regarding a recent news story published by a leading provider of financial and industry news. The Company's policy is ...
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2020 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.