We all know that discipline is very important for any kind of task and plan. Without discipline, we’ll gravitate towards jumping in and out of a trade whenever we feel like it. Trading discipline is very much important if you want to be profitable as a trader.
Sometimes, you think it’s okay to throw your trading plan in the rear Global Market if it means making profits. That would give you pleasure, but that would also make you think that doing it over and over again is okay.
In fact, it’s not okay.
What happens when you ditch your trading plan?
When you quit following your trading plan Forex Currencies for temporary or quick rewards, you’re basically getting some rewards for lacking discipline. That already has a bad ring to it. Even more so, you start believing that it’s okay to ditch a trading plan in exchange of a reward.
That means you’re more likely to do it more often in the future. And we all know what happens when a trader starts trading with no plan—he plummets really, really bad.
Justified vs. Unjustified Wins
It’s extremely important to distinguish between justified and unjustified wins.
When we say justified wins, we refer to the instance when you create a very thorough trading plan and then you stick to the plan. When you win and it’s because of the trading plan that you follow, then it’s a justified win.
When we say unjustified wins, we refer to the instance when you make a plan but ditch it or you don’t have any trading plan at all. Either way, not sticking to your trading plan is no different from having no bullets in a war. You may get rewarded, but it would most likely be just chance—a shot in the dark that purely depends on chances without skills.
As much as possible, all your wins should be justified. This reinforces discipline, spelling consistent and profitable trading.
Consistency and the Law of Averages
You have to make the law of the averages work to your advantage. What you have to do is to use trading plan over and over until you perfect it. The target result is to produce an overall profit from the strategy across the series of your trades.
To put it in other words, you have to hone the discipline and skills to learn how to win trades consistently and in the same way every single time. Consistency is key.
If you don’t have the discipline to follow your trading plan and you throw it away one time or another, you’re also ditching probabilities and you will more likely lose overall.
You have to follow your trading plan no matter how tempting it is to deviate and change course. You have to strengthen your foundation of discipline and patience to become more profitable in the longer run. More importantly, try to avoid any kind of habit or trading belief that makes you think you can be rewarded by not sticking to a plan.