Discipline: the rules you do not break
What you learn in 3 minutesThis lesson shows a short written routine you can follow before, during and after every session. The routine is the same each day, so you are not making new decisions while money is moving. We start with what one pip costs in naira, because a rule is only useful if you know its price.
A five-point checklist with one naira figure
| Step | Amount | Note |
|---|---|---|
| 1. Direction and level | EUR/USD near 1.0850 | Write the pair and the price you are watching before you click anything. |
| 2. Where you are wrong | Stop level written down | A price, not a feeling. If the market reaches it, the idea is finished. |
| 3. Distance to that level | 20 pips | The gap between your entry and your stop, counted in pips. |
| 4. Size | 0.10 lots | One tenth of a standard lot. This is the number you control. |
| 5. Cost of being wrong | ₦21,700 | 20 pips x 0.10 lots x 10 units per pip = 20 units of the quote currency; 20 x ₦1,085 per unit = ₦21,700. |
Your broker may round the pip value, add a spread, a commission or a swap, and the naira conversion changes with the exchange rate. All of these vary between brokers, so check your own platform's contract specifications.
The mistake people make here
Many people write a plan and then change it once the position is open, moving the stop further away because the loss feels uncomfortable. That single change turns a known cost into an unknown one. Decide the stop, the size and the maximum loss before you enter, and treat them as fixed for that trade. If you want to change a rule, change it between sessions, on paper, not while money is at risk.Check yourself
You plan a 15 pip stop on 0.20 lots of EUR/USD at 1.0850. What is the cost in naira?
15 pips x 0.20 lots x 10 units per pip = 30 units of the quote currency. 30 x ₦1,085 = ₦32,550.
You plan a 25 pip stop on 0.05 lots of EUR/USD at 1.0850. What is the cost in naira?
25 pips x 0.05 lots x 10 units per pip = 12.5 units of the quote currency. 12.5 x ₦1,085 = ₦13,562.50.