Are you?

Seeing as I ramble on about discipline and it’s importance I thought I’d add a post about how I go about ensuring I keep my discipline in check.

A good trader can be expected to win around 60% of the time and as long as they employ worthwhile money management and risk/reward they will win long-term. I feel the biggest weakness of any new trader or inexperienced trader is the fear of losing. The ability to accept the fact losses will happen is a big advantage. From what I’ve seen on various forums and chats, an individual will panic when a loss occurs and then begin to question either themselves or the strategy they are using. This is a huge downfall in a trader’s mindset. My advice would be to firstly make sure you are using a strategy you are 110% comfortable with and know the workings of. If you’re trading something that is new or unfamiliar, the confidence is highly unlikely to be there. If you trust something, you can the ability to keep with it through the rough times. Secondly is to think long-term not trade by trade. Jumping from one system to another is the short route to losing and should be avoided at all costs. Granted, if you are using a losing strategy, change it out for a new one but do not try and manage 5/6 systems at once and change them weekly due to a loss.If you having a losing day accept it and be ready for the next day.

Another downfall I believe is exiting a trade to early. You have defined stops and profit targets and unless you have a good reason, let the trade play out. Exceptions are high impact news items and if you understand support/resistance levels you could exit when you know there is a strong area to pass. Otherwise, I firmly believe you should let the trade run out. If you’re uncomfortable watching a trade pip by pip, go for a little walk, take a breath of fresh air and clear your mind.

Having a trading checklist is also a nice little thing to keep next to you whilst trading. Constantly remind yourself of your rules. Also keep a pad of paper or diary to keep notes in. If you messed a trade up, write down why and try and learn from it. I realise this is a vast subject and other traders will have their own views but I’ll try to keep updating ideas/thoughts on being a disciplined trader regularly.

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  1. Hi, Thank you for your comment. Your articles are very informative =)

    • Hi,

      Afraid not a patch on your very informative and professional blogs. Enjoying your articles.

      Thanks for stopping by.

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