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Trading Discipline

Trading discipline is crucial for successful trading by helping traders avoid impulsive decisions that often lead to losses. Maintaining a plan with rules minimizes risks and increases profitable trades by sticking to daily profit and loss targets, as well as weekly/monthly limits, a fixed strategy for different market types, and proper risk-reward ratios like 1:2. Successful traders also avoid revenge or emotional trading, have realistic market expectations, use charts to exit trades, and always calculate potential losses by using stop losses.

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Catarina Velez
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132 views

Trading Discipline

Trading discipline is crucial for successful trading by helping traders avoid impulsive decisions that often lead to losses. Maintaining a plan with rules minimizes risks and increases profitable trades by sticking to daily profit and loss targets, as well as weekly/monthly limits, a fixed strategy for different market types, and proper risk-reward ratios like 1:2. Successful traders also avoid revenge or emotional trading, have realistic market expectations, use charts to exit trades, and always calculate potential losses by using stop losses.

Uploaded by

Catarina Velez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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TRADING

DISCIPLINE
WHY IS IT IMPORTANT?
Trading discipline is crucial for successful trading
because it helps traders to avoid making impulsive
decisions, which often lead to losses. By sticking
to a plan and following a set of rules, traders can
minimize risks and increase the likelihood of
making profitable trades.
Know Yourself
&
Your Risk Appetite
Daily Profit Target
&
Loss Limit
•Weekly/ Monthly Profit Target
&
Loss Limit
Have A Fixed Strategy/ Trading Style
for various Market Types
Risk To Reward Ratio
Ideal Risk to Reward Ratio i.e. R:R is 1:2. Stop
Entering in the middle of the chart.

> Always look at the SL first


No Revenge Trading
&
No Happy Trading
Have Realistic
Expectations
from the
Market
Exit from
the Trade by
Looking at
the Chart
Always calculate your
Loss first
&
Use Stop Loss

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