The Importance of Discipline and Technical Analysis for Forex Trading
Discipline in addition to calculated risk is the most important factor that determines the outcome of any battle.
Strategies and tactics are of little use unless one has complete control over ones own mind to handle the stress to remain disciplined under any circumstances including an adverse one.
Even in the face of utter defeat if one continues to remain disciplined and not forget the lessons that one learnt during training period, he or she is likely to taste success as per the strategy predetermined before going full fledged for the battle.
The same is true in finance too, particularly high risk trading such as Forex.
The Turtle Training
It has been observed that when a group of members belonging to diverse socio-economic and educational background with very little or no knowledge in finance let alone forex, are trained under the able guidance and leadership of an expert or Guru in the field of Forex trading, its factually possible to motivate each of these members of the diverse group and help them steer on their own to make their first millions after receiving just two weeks of intense training alone.
Such an experiment was first attempted by Richard Dennis popularly known as the Turtle Trader and is a well known Forex trader, took up a challenge from his friend to prove that anyone can be successful in Forex Trading as one sticks to the fundamentals that determines the outcome of any Forex trade.
This experiment was first started by him way back in the year 1980, when he invited people of different background to undertake an intense two week Forex Trading training program under his guidance. Many people responded to his advertisement that appeared on newspapers and volunteered to learn the nitty gritty of Forex trading under his able guidance.
It might perhaps be news to you that amongst the group was a boy who dropped out from school, a security guard, an actor and some card players who took this 14 day program and went on to make millions of dollars from Forex Trading.
These guys together helped Dennis to make $100 Million in just Four Years. All of them without exception became legends in their life time.
What Dennis taught them was to discipline their mind set and attitude. He gave them the best of training to understand and the technicalities for analysis, to plan out their next strategy.
He taught them to be logical and stick to the plan instead of becoming suddenly very greedy when everything appeared bright and honky-dory or fearful when things turned really bad.
During training, he gave them live trading accounts so that he could observe them how they reacted and guide them better.
According to Dennis as long as any person have adequate knowledge and training that clears the fundamentals needed to understand the mechanism of a trading system and likewise applies the mind logically with total discipline, its possible for that person to minimize the losses.
Any Forex trader no matter what the circumstances are must believe in the trading system and stick to it till one stumbles over a big game that would let him carry home with the winning thousands that he had waited for so patiently and with single minded determination and discipline.
Dennis proved that most Forex traders fail to make the money in the Forex market because of lack of discipline and not believing in the system or perhaps have failed to understand the fundamentals including the technical modalities for trading due to lack of proper training.
More often than not, Dennis believes that people are duped into the system because of misguidance and improper training by self proclaimed experts who are no better than con men.
So it must be kept in mind that although Forex trading might look easy to understand but its actually proper money management and mind set with discipline that helps traders to rake their millions.
Do not be naive to believe that the market cannot suddenly take a downswing when everything was looking good on paper. Anything can happen for its unpredictable and no one can forecast for sure about the outcome.
One must be ready to brace the losses, since even the best traders and experts with years of experience in the field too can lose heavily at times. Its because of their discipline that they manage to recover the losses and go ahead to make those millions that everyone wants to make but few succeed.
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