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Self-Discipline in Trading

February 05, 2012 | Comments: 0 | Views: 124

Having self-discipline is having the ability to follow through on your plans and goals. Often times we get tugged in various directions and enticed by making choices that don't help us along our path to our goals and fulfillment.

"The path of least resistance is what makes all rivers and some men crooked." - Napoleon Hill

Self-discipline is the ability to make the conscious choice (ultimately it becomes a habit) of doing the thing that will move you towards your goal - and sometimes it's the hard or unnatural or unpopular thing to do. It's foregoing instant gratification for the longer term objective. Typically, however, people operate on autopilot and this is dangerous when you have not yet developed the right 'habits' for success.

In the trading game, you must have self-discipline. You must look at the entire forest and not focus on one tree. If you get too caught up in each and every trade, you will lose sight of the larger goal. So there is a balance here that must be maintained.

The key is to care a lot about your overall trading progress, but not care too much about any individual trade.

This statement, in bold font above, is of HUGE importance! Just like in life, BALANCE is key. You can't take the attitude of "I don't care", but you can't also take the attitude of "This is LIFE or DEATH."

Your Identity also plays a huge role in this because if you see yourself as someone who lacks self-discipline, then all the will power in the world will not overpower this. You are someone, in your mind, who lacks self-discipline.

So the key components to have self-discipline in Trading are:

1) Mastering a proven method of trading

2) Having and following your personal Trading Plan

3) Reviewing your trades and tracking and measuring them to assess your performance

4) Making adjustments to improve your performance and results

5) Then repeat steps 3 & 4 over and over again

If you are trading without following your method and plan and making adjustments as you assess your performance, then you are not going to be improving. If you don't have a method or plan, then that's where you need to start.

Remember, anyone can have a period of winning trades, but the key is that you want a dependable, consistent income with a rising equity curve - and in order to do that, you must follow those 5 steps above.

Tom Willard has been investing in the stock market for over 15 years and daytrading for over 7 years. He is the co-founder of RevolutionaryTrading, LLC, and the website is http://www.revolutionarytrading.com. Go to that site to get signed up for a free membership where he will be sending out valuable free information on stock ideas and stock trading techniques to members.

Revolutionary Trading is revolutionizing the education process so that anyone can take control of their investments and financial future by learning the techniques to trade and invest in the stock markets.

Source: EzineArticles
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