The Investor Diary Entry #95: December 15, 2025
We often talk about the perfect strategy, but today I’m discussing a more painful truth: the failure to follow one. Like many traders, I developed what I thought was a solid trading plan. I back-tested, set my indicators, and felt prepared. Yet, when it came to live execution on my demo account, I repeatedly broke my own rules. The disconnect between creating a plan and following it is where many of us, including myself, falter. This is a candid look at those costly implementation errors.
AD;LR
I broke key rules of my own trading plan—ignoring RSI levels and holding losing trades based on hope—which damaged my performance. The core lesson is that a plan is useless without the discipline to follow it. I’m now using chart replay features to rigorously train myself on my system before risking real capital.
The Gap Between Plan and Action
A solid Forex trading plan is a set of non-negotiable rules that guide every entry, exit, and management decision. My plan involved specific conditions: a stochastic crossover on the daily chart, a converging moving average indicator showing green on the 4-hour, and the 4-hour RSI above both 50 and its own moving average. On paper, it was clear. In practice, I found excuses to deviate. In one EURUSD trade, I entered a sell position even though the RSI was not below 50, breaking a core entry rule. I ignored this because price had rejected a resistance level, choosing narrative over my predefined criteria.
Where Discipline Broke Down: Hope Over Rules
The mistakes multiplied after entry. My plan had a clear stop condition: if the daily stochastic crossed back, the trade was invalid. In several instances, like that same EURUSD trade, I saw this happen. Instead of exiting, I held on, hoping price would reverse from a perceived ABC pattern or a prior order block. I replaced my rules with hope. This is not trading; it is gambling. This behavior, if done on a live account, is a direct plan to lose. It erodes capital and confidence. Every moment I stayed in a trade where my initial thesis was negated, I was practicing failure.
The Seduction of the “Thesis”
I moved from a mechanical batch-closing approach to assigning a “thesis” to each trade, thinking it sounded more sophisticated. This backfired. A thesis became an emotional anchor. For example, in an AUDNZD trade, my entry again violated my RSI rule. Yet, I held because I had a story about a daily order block. The thesis was negated, but I remained in the trade, watching it turn against me. The fancy concept became a justification for breaking my plan. The goal shifted from following rules to simply wanting a winning trade, which is a dangerous mindset for anyone learning how to become a successful forex trader.
Consequences for Performance and Psychology
This inconsistent execution directly hurt my metrics. My win loss ratio, which had been improving, suffered. While still better than my earliest days, it declined because I was taking trades that never met my edge and failing to exit losers promptly. More importantly, it created frustration and self-doubt. I was upset because I knew better. I had all the signals to close a trade or not take it, yet I acted against my own knowledge. This internal conflict is exhausting and undermines the consistency needed for long-term success.
The Path Forward: Back to Testing and Education
Recognizing this, my solution is twofold. First, I must retrain my discipline. I discovered the chart replay feature on TradingView, which allows me to simulate the market in real-time against historical data. I can now practice my plan relentlessly, enforcing the rules without monetary pressure, to build the muscle memory of correct execution.
Second, I must examine the plan itself. If I am consistently making exceptions, perhaps the rules are not clear or robust enough. I am committing to further education, particularly on the Smart Money Concepts (SMC) I use, to ensure my plan’s logic is sound. A truly solid forex trading plan should be easy to follow because its logic is deeply understood.
FAQ Section
What is a forex trading plan?
A forex trading plan is a comprehensive, written set of rules that defines a trader’s strategy. It includes criteria for market analysis, entry and exit signals, position sizing, and risk management. Its purpose is to remove emotion and create consistency.
How can I improve my win loss ratio?
Improving your win loss ratio is less about chasing more wins and more about following your plan. It involves strict adherence to entry rules to ensure higher-probability setups, and decisive exit rules to cut losses quickly and let winners run. Reviewing losing trades to see if they violated your plan is a key step.
How do I become a successful forex trader?
Success is built on a foundation of a solid trading plan, the discipline to follow it consistently, and effective risk management. It requires continuous education and the humility to review and learn from mistakes, just as documented in this post. Psychological resilience is as important as technical skill.
Conclusion
My recent experience has been a stark reminder that a plan is only as good as the person executing it. The journey to become a successful forex trader is paved with self-honesty. I was focused on finding winning trades instead of executing a profitable plan. Now, the work is clear: I must drill my plan through replay until following it becomes automatic, and I must refine the plan until I trust it completely. The mistakes hurt, but they are the tuition fee for a valuable lesson in discipline.
The Investor
Monday 15 December 2025
About The Author
I started to look into individual stocks in January 2022. I created this diary initially for myself to track my investing progress, and second, as a place where I can share my ideas publicly, not only on stock investment, but on any venture that I start learning, such as Forex Trading, Blogging, or any other future venture that I might think of trying out.
By repeating things I learn to myself and trying to explain it to others, I help myself better understand what I am learning. Additionally, hoping that others will share their ideas and learn from each other, and lastly as an online business where some links that I share are affiliate links, and if anybody bought anything by clicking tihose links, I will get a commission based on that successful sale, which of course will not affect the price that you are buying the product or service at.
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Furthermore, this site is in no way or form giving any financial or investing advice, nor is it encouraging or discouraging people to buy or sell any financial instrument. This is a personal diary in which I track my own progress and share it for informational, educational, and entertainment purposes.