Trading Psychology · Trading discipline · Article 2 of 4
Consistency and Discipline
Meet two traders. Both win six trades out of ten. One ends up in profit, the other in loss.
CFDs are complex instruments and carry a high risk of losing money rapidly because of leverage. Make sure you understand how CFDs work and whether you can afford to take the high risk of losing your money.
| Trader | Wins out of 10 | Risk per trade | Result over 10 trades |
|---|---|---|---|
| A: steady risk | 6 | USD 100 on every trade, winners make USD 150 | 6 × 150 − 4 × 100 = USD 500 profit |
| B: uneven risk | 6 | USD 50 on the winners (each makes USD 75), USD 200 on the losers | 6 × 75 − 4 × 200 = USD 350 loss |
Their strategy is the same. Their win rate is the same. The difference is that Trader A does the same thing every time and Trader B doesn't. A flawless strategy doesn't exist, but a repeatable one does.
Keep three things fixed
- Your risk. Risk the same share of your account on every trade, whether you feel confident or not. Feelings are a poor guide to which trade will win.
- Your trigger. If a price breaks a level, decide once whether you enter on the break or wait for the candle to close beyond it. Then do the same thing every time.
- Your toolkit. Pick a few tools and stay with them. Swapping indicators every week means you never learn how any of them behave.
Score your rules, not your profit
At the end of each week, count how many trades followed every rule in your plan. Write it as a score, such as 17 out of 20. Profit swings with the market; your rule score shows whether you're improving. When the score rises, results tend to follow.
