Breaking Bad Foreign Exchange Melbourne Trading Habits

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This article is about how you can change your bad foreign exchange Melbourne trading habits.

Foreign Exchange Melbourne Habits

It is vital for all traders to have a solid trading plan.  Those who make the effort to implement a good trading plan are the ones more likely to achieve success in the foreign exchange Melbourne market.  Even with a good trading plan, it is often quite easy to develop bad trading habits.  Traders often ignore their trading plans and act on instinct instead.

What is Success?

To make an attempt at breaking bad habits, you need to determine if your trade was successful or a failure on whether you were able to stick to your plan, not only on whether it showed a profit or loss.  If you have experienced a bad trade which was not handled as per your trading plan, even if you made a profit, you need to list it as a failure.  This means you have to go back to it and determine where you went wrong.  This will stop you from rewarding yourself for undisciplined trades.  If you continue to become excited by undisciplined trading, you will start accepting it as a norm and continue to do so.  This will eventually end in you making huge losses and leaving the trading market.

You Should Your Views of Failure and Success

Traders often have selective memories of their trading.  They choose not to remember the number of small losses they have made and the number of emotional trades they have entered.  You should initiate a form of punishment for each emotional and undisciplined trade you enter.  This will soon make you realise that not sticking to your plan will eventually lead to you losing money.  When you are in the process of trying to overcome undisciplined trading and you stick to your trading plan, even though you have shown a loss, you should reward yourself for that.

Punishment and Reward in Foreign Exchange Melbourne

Once you are aware of your method of defining failure and success, you should instigate a process of punishment and reward to try and change bad trading habits.  Your first step is to amend your internal dialogue.  Most traders should pat themselves on the back when they have gone through a trade by following their plan, but they should learn to not do that if they have not followed their plan, but still shown a profit.

Your next step is a physical or external reward system.  Most people treat themselves to something special on a bad day or if they have attained an achievement.  You should not do this if your bad day came from ignoring your trading plan.  The bottom line is that you should be rewarded for following your trading plan and punished for not doing so.

You should come to the realisation that the process of making money whilst trading is the most important aspect of your entry into the foreign exchange Melbourne market.  However, you cannot make money consistently if you do not have a trading plan.  If you do take the time to implement a trading plan and choose not to follow it, you do not deserve to be making money.  You can always change your trading plan if you discover fault with it, but, why bother if you are not going to follow it.

 

 

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