Consistent & Discipline Rules For Global Forex Trading

In order for you to be able to realize the full potential of your global forex trading systems it is very important that you take every trading entry, adjust every stop, and close out every trade when your pre-defined global forex trading system says you should.

This takes an extreme amount of confidence in your global forex trading, good and reliable technology, and the unwavering discipline to stick to your global forex trading plan no matter what happens.

The good thing about have an underlying assumption about being consistent and disciplined is that you have a pre-defined plan for every situation that you may face in your global forex trading, so that you know how you are defining what being consistent really means. Your plan needs to include at least the following items in it if it is going to be successful:

• All of your global forex trading rules for entering, adding to, and getting out of your positions
• What you are planning to do if your global forex trading computer, internet connection, broker, power, telephone etc. fails to be of any real use or break down
• What you will do if for some reason you are unable to trade
• What you will do if you lose a certain percentage of your account
• What you will do if all the markets are closed and you can’t get out of your current positions

Unless you write down the answers to all these scenarios, you cannot be properly consistent and disciplined in your approach to global forex trading and if you lose money you will not know if it is because you didn’t follow your plan, your plan is incomplete, your systems do not work, or if it is because you are simply going through a losing period.

Let Your Global Forex Trading Profits Run
This rule is undoubtedly the key to becoming successful at global forex trading. It is in these three simple words however that are easier said than done. When we get a profitable trade going it is our natural fear of losing the unrealized cash starts and we truly want to close it out now and quit while we are ahead.

Most global forex trading actually consists of long periods of small winners and losers, that is quickly followed by a few huge winners that make the difference between overall profitability and simply breaking even or even losing thanks to the global forex trading costs (commissions, spread, and slippage).

It is our ability to let the huge winners become huge. This is what determines how we will perform overall during the course of the year. The key here is in letting a winning streak run is to have trailing stops that are generally outside the daily noise of the market so that they are not so tight as to get stopped out during ‘normal’ global forex trading process.

This means that you need to be prepared to give up a relatively large portion of a winning trade’s open profit and it is also the thing that makes this so hard to implement. In fact, we should be adding to a winner and widening stops rather than trying to figure out how tight our stops can be to capture the largest amount of profit.

The trade has already shown you if it intends to be a winner, and the chances are it is a low-risk idea if you were to add to the position now rather than ‘strangle it’ with stops that are too tight.

It is very important that your management rules leave room for large winning trades, and that the rules are pre-defined and understood before you place the trade in the first place. This will allow you to stick to your global forex trading rules when you do get the big winner.