The one constant in trading currencies is the following equation discipline = Success. Many people find it hard to be disciplined and stick to a plan so here we will give you the 10 golden rules for improving your trading discipline and your currency trading profits.

Discipline is all about emotional control and while we can never get rid of our emotions which make us human, we can make a conscious effort to control them and the rules below if you follow them will keep you on track and help you enjoy long term currency trading success.

1. Use a Journal and Check List

When you start trading its a good idea to keep a journal of your trades and also a check list of the rules you use for both entry and exit. By having to check off the rules, helps you place the trading to the right criteria without your emotions. All businessmen track their statistics and you should to so you can see how your trading strategy is performing and it will also, help you keep track of your average win, loss, percentage of trades run, exposure in the market and many other key factors which you can look at, to see your trading plan is on track and kept on track.

2. Trading Signal Entry and Exit go In Together

When you enter a trade offset it with your exit trade or stop straight away. Never think about a stop after a trade is in the market because you will be tempted to put the stop to far back and let a loss run. For novice traders this is a key error so don't make this mistake.

3. Cut Back Trading When Losing

When your losing money cut position size and go slowly. Discipline is all about holding your equity and if your in a losing streak accept it and cut your position size, until your trading strategy starts to win again.

4. See All Currency Pairs as Good to Trade

Just because you won twice on the trot with a currency pair, doesn't mean the next trade you take will be a winner. Also just because you lost 5 times consecutively on another pair, doesn't mean the next one can't be a winner. Look at the trade set up your trading and NOT the pair and don't allow what happened in the past, make you enthusiastic or fearful, of taking a trading signal in any pair.

5. Develop A trading Methodology and Stick With it

Many traders don't give their trading strategy enough time in real time trading and want to try another trading method but if you do this you will never make money. Quite simply, a method in real time trading should be used for at least a year. If you trading techniques are based on sound logic, you will end up a winner if you stick with them. Don't be impatient – give your system time to work, make money and ignore short term periods of draw down.

6. Be Consistent and Follow the Rules

A salesmen, has confidence in the rules he follows to close a deal and you need to think in the same way. Rules are rules and they need to be followed with discipline. This will lead to consistency in the application of your trading method which will allow you to exploit it's edge in the market for profit. Earlier in this article, we stressed the importance of tracking your trades with a journal which will help you stay consistent and its very important because - the longer you trade this way, the more disciplined you will become.

7. Value Your Money

Don't speculate with funds you can't afford to lose so the old saying goes but my own view is different. If you treat your money like this, you will lose it. I like to trade with money which while not essential to my lifestyle still hurts if I lose it. When trading you have to care about your money or you will lose it.

8. Don't Hold Trades that Don't Move

Ever entered a trade expecting it to move and it doesn't, have you ever waited around for it to move in your favour and then got stopped out? This used to happen to me a lot and now I simply give a trading signal X amount of time to work and if not I get out. Since learning this trading tip, its saved me a lot of money.

9. Don't Hesitate Pull the Trigger

How many traders see a trade know it was going to go their way and don't get their trading signal in? A Huge number they study the trade to much, procrastinate, hesitate and the trade and potential profit is gone – they knew they should have done the trade but for some reason didn't. Many traders do this but the real pro doesn't think to much – his plan is there his rules are set so he enters the trade, at the best possible price. If he's wrong, he's out with a small loss but the point to keep in mind is - if you see a good trade go for it and more often than not, it will be a winner rather than a loser. Always trust your judgement.

10. All Traders Are Equal

In terms of the market we all enter as equals from the trader working from home to the corporate bank trader. What separates, the winner from the loser is his behaviour and this is mostly down to self control in the brutal ever changing world of Forex. People say computers beat humans but they don't. This is a human market of emotion and its your disciplined application of your plan which is the key to you making money.

Final Words

If you apply the trading tips in this article in relation to trading discipline, they will keep you on track and help you overcome emotions which can cause you to lose. Trading discipline will always be what separates out the pro trader who makes money so be a pro and apply the 10 rules above and enjoy long term currency trading success.