Forex trading obviously requires a high degree of discipline, most all traders know this, whether beginner or pro. However, knowing is different from doing, and while most all traders know they should be more disciplined, it often ends up being something they think they can put off until they make X amount of money. Trying to rationalize in your head not being disciplined is one of the biggest mistakes that almost all traders make at some point. I know how it works because I was once in your shoes. You probably have thought something like this recently, “I’ll start to become disciplined and manage my risk better once I get my account up to X amount of money…” Sound familiar? I’m willing to bet a lot of money that you thought that exact thing at some point or still think that. Almost every trader has.
The problem with thinking you can put off being a disciplined trader until XYZ happens is fairly obvious, yet most traders continue to do it. This is simply a mistake born out of greed, and greedy traders do not make money over the long-run. If there is one thing that will destroy your trading account faster than anything, it’s greed. A greedy trader trades too much and risks too much per trade, over-trading and over-leveraging are the two main reasons why most Forex traders lose money. In my opinion, trading almost naturally induces greedy behavior in traders due to the constant temptation of easily being able to make fast money by just clicking your mouse. Thus, for almost all people who trade the markets, a conscious plan to fight greed before it consumes you is necessary if you want to become a successful Forex trader.
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