Plan your trading for today:
Maximum profit: xxx points (setting "TAKE PROFIT" point)
Maximum loss: xxx points (setting "STOP LOSS" point)
and STICK WITH IT!
Disipline in forex trading is the hardest part of all! A lot of temptation that can drive you away from your plan.
Lets say, you open a long position (BUY), then the price move-up and you get unrealized capital gain (because you have not close the deal yet). You will wish, "yes, I am making profit here. I will let it open, hopefully the price will fly to the sky.". All of the sudden, after 100points, it fall to -200! You will definitely cry!
So, always set STOP LOSS and TAKE PROFIT point after you open your position, no matter you take long position (BUY) or short position (SELL).
