Trading Success for Beginners takes Discipline
To become a consistent trader you need to learn many skills aside from just knowing what to do as a trading need to have the discipline to do the right things at the right time.
There are so many ways that you as a trader can make money lose money break even, while traders know they have to cut losses not trade all the time have a money management plan and do their research but without the self-discipline to follow all those things it’s impossible to become successful trader.
Trading discipline is what makes all those things happen it’s probably the single most important asset a trader can have. This discipline is needed in every facet of trading and should behind your list of what you need to work on I could probably take a step further and safety don’t have discipline you don’t have a chance.
You may not have discipline in your personal life and maybe in those areas of your life you can get away with it but a person who doesn’t have discipline find trading much harder than will a person who is disciplined.
All trading, or successful trading is based on probabilities. In order to allow your edge to play itself out you must be disciplined in following your rules. The rules are there because there’s a higher probability of something happening, if you don't follow them the edge is gone.
Without discipline you won’t be selective, selective in entering new trades, holding the good trades and exiting losing trades exactly when you should. You can have a great trading system on paper, maybe you even back tested it but there is not a question in my mind you will lose money unless you have the discipline to stay within the strategy and within the money management of the plan.
Many traders believe discipline only applies to taking a stop-loss, but this simply isn’t true. There is disciplined before you even put the trade on, such as having the discipline to create a trading plan in the first place. There is also the discipline to spend the necessary time to do research, to scan for good ideas and not be lazy.
One final area of trading that requires discipline is not talked about very often. I’m talking about the time for a beginner trader when you just learning to take risk, in other words determining how much risk you take per trade.
Beginner traders will find that there’s a learning curve and a tuition to pay to become a trader, the amazing thing to me is the cost of that learning curve is decided by each trader in the form of how many shares per trade you execute.
Too many traders forget the trading is a business and there is no reason to trade bigger size until you’ve proven or learned how. Why trade 1000 shares when you could learn on 100? There will be a time and a place for you to have the discipline to trade bigger but until then my advice is to have the discipline not to.
Let your trading profits dictate, how big or how small your trading tuition will be.
There are so many ways that you as a trader can make money lose money break even, while traders know they have to cut losses not trade all the time have a money management plan and do their research but without the self-discipline to follow all those things it’s impossible to become successful trader.
Trading discipline is what makes all those things happen it’s probably the single most important asset a trader can have. This discipline is needed in every facet of trading and should behind your list of what you need to work on I could probably take a step further and safety don’t have discipline you don’t have a chance.
You may not have discipline in your personal life and maybe in those areas of your life you can get away with it but a person who doesn’t have discipline find trading much harder than will a person who is disciplined.
All trading, or successful trading is based on probabilities. In order to allow your edge to play itself out you must be disciplined in following your rules. The rules are there because there’s a higher probability of something happening, if you don't follow them the edge is gone.
Without discipline you won’t be selective, selective in entering new trades, holding the good trades and exiting losing trades exactly when you should. You can have a great trading system on paper, maybe you even back tested it but there is not a question in my mind you will lose money unless you have the discipline to stay within the strategy and within the money management of the plan.
Many traders believe discipline only applies to taking a stop-loss, but this simply isn’t true. There is disciplined before you even put the trade on, such as having the discipline to create a trading plan in the first place. There is also the discipline to spend the necessary time to do research, to scan for good ideas and not be lazy.
One final area of trading that requires discipline is not talked about very often. I’m talking about the time for a beginner trader when you just learning to take risk, in other words determining how much risk you take per trade.
Beginner traders will find that there’s a learning curve and a tuition to pay to become a trader, the amazing thing to me is the cost of that learning curve is decided by each trader in the form of how many shares per trade you execute.
Too many traders forget the trading is a business and there is no reason to trade bigger size until you’ve proven or learned how. Why trade 1000 shares when you could learn on 100? There will be a time and a place for you to have the discipline to trade bigger but until then my advice is to have the discipline not to.
Let your trading profits dictate, how big or how small your trading tuition will be.