Mistakes to avoid for beginners / Lack of Discipline.
A trading plan is only of value if you have the patience and discipline to follow it. Follow his trading plan is difficult, it is undeniable, but it is a prerequisite to succeed in trading on the currency. While exchange rates change, you will be taken quickly in the market and you may, at any time to lose your control and make irrational decisions that do not match your original trading plan. For example, if rates move upwards, exceeding your original order take-profit, you will be tempted to hold your position any longer to benefit from rising. The opposite pattern works in the case of a rate cut. However, is that such scenarios make sense? Indeed, if you took the time before entering the market, to establish levels of loss and take-profit, how market conditions have also come to change abruptly to negate your original goals ? Are you sure you not rather act out of emotion, believing collect a uptrend or a downtrend that does not really exist?
That's why a trading plan is essential: it allows you not to get overwhelmed by your emotions, especially during periods of high volatility.
Of course, a trading plan may be amended, depending, for example, your overall objectives. However, do not change your trading plan in action.
Finally, it should be understood that the best trading plan is sometimes ineffective in times of high volatility. Sometimes it's better to temporarily withdraw from that market to flog a dead horse.