What is discipline in trading. 20 Rules Followed by Professional Traders
Making an occasional winning trade, even when you throw your trading plan out the window, may provide a short-term pleasure, but entering trades haphazardly can adversely influence your ability to maintain discipline in the long term.
But what is discipline? Discipline is about following a set of rules and not questioning them. In trading, these rules are defined by your trading strategy which determines your position entry and exit points.
Trading is a marathon, not a sprint! When what is discipline in trading stop following your trading plan, you become rewarded for lacking discipline and you may start believing that abandoning a trading plan is no big deal.
And, you need to decide between positional trading and scalping. Take positions that seem to be the most obvious, because these are the best way to maximise your profits. You can learn how to spot no-brainer setups using our analysis and webinars.
An unjustified reward may increase your tendency to abandon trading plans in the future. A win that results from following a trading plan is justified and reinforces discipline. You might be rewarded, but the outcome occurred by chance.
You might as well flip a coin or hang a printed copy of your charts on the wall and throw darts at it to help you make trading decisions. The win is unjustified and can reinforce undisciplined trading. Maintaining discipline is vital for consistent and profitable trading.
Trading is a matter of getting the law of averages to work in your favor. You trade proven forex trading strategies, over and over, so that across a series of trades, the strategies work enough to produce an overall profit.
The more shots you take, the more likely you will amass points.
Just look at Steph Curry. The winning player is the person who first develops the skill to make the shot consistently so that at every possible opportunity, the ball is likely to go through the basket.
Being disciplined 99% of the time means not being disciplined
Consistency is crucial! One must trade consistently, following a specific trading plan on each and every single trade.
- The Bottom Line Booking reliable profits in financial markets is harder than it looks at first glance.
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- Discipline in trading
- You will be tested consistently and this will require a psychological mindset, which allows you to make the right decision when the going gets tough.
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If you trade one approach this time, and a different approach at another time, your performance will more than likely be haphazard. If you follow the plan sometimes and abandon it at other times, you throw off the probabilities, and you will most likely end up losing overall.
With trading discipline comes profitability. Follow your own trading plan, and cement in the mindset that if you follow your plan, you will end up more profitable in the long run.
But trading can also be a science in a way. In Forex trading, discipline means following your trading system rules strictly and precisely. I dare say, religiously.