What’s the harm in deviating from your forex trading strategy if you still make a profit?
Making a profitable trade on occasion, even if you toss your trading plan out the window, may bring short-term pleasure, but entering deals haphazardly might have a negative impact on your ability to retain discipline in the long run.
Trading is a marathon, not a sprint.
When you quit your trading plan, you are rewarded for your lack of discipline, and you may begin to believe that abandoning a trading plan is not a big problem.
Unjustified compensation may raise your proclivity to abandon trade strategies in the future.
You might think, “I was rewarded once, maybe I’ll be rewarded again.” I’ll take a risk.”
However, the benefits of undisciplined trading are usually fleeting, and a lack of discipline eventually leads to long-term trading losses.
It is critical to distinguish between justified and unjustified victories.
When you establish a highly clear trading plan and FOLLOW the plan, you will have a justified win. Success as a result of sticking to a trading strategy is warranted and reinforces discipline.
An unjustifiable victory comes when you develop a plan but do not follow through on it or have no plan. You may be rewarded, but the outcome was random.
To help you make trading decisions, you may flip a coin or hang a printed copy of your charts on the wall and toss darts at it.
The win is undeserved and may encourage irrational trading.
Discipline is essential for regular and profitable trading.
Trading is all about making the law of averages work in your favor.
You trade proven forex trading methods over and over again until the strategies make a profit across a series of deals.
Each and every trade must be executed in accordance with a precise trading plan.
If you trade one approach one time and a different one the next, your performance will most likely be erratic.
You must let the law of averages to work in your favor so that you can earn from a series of trades.
If you stick to the strategy at times and forsake it at others, the odds are thrown off, and you will most likely lose overall.
Profitability follows trading discipline.
Don’t allow unwarranted victories undermine your ability to keep discipline.
Follow your own trading plan and instill in yourself the belief that if you stick to your plan, you will be more profitable in the long term.
Now that we’ve established the significance of a trading plan, it’s time to examine what should be included in one.