For one to be a successful trader they must realise that Discipline is absolutely necessary and not luxury. It is absolutely compulsory and without Discipline it’s impossible to make it as a trader. This isn’t anything new all of us know that Discipline is key. However the reality is that most treat it as a luxury rather than a necessity. If it was truly perceived as a necessity then traders would do all that is required to develop the required level of Discipline.
Traders seeing Discipline as a luxury, is shown by their actions. If for example you find yourself knowing that you must Meditate daily before trading, you know that you must do your Pre-Market Analysis and build a trading plan for the day and you also know that you must execute that plan and nothing else. Well if during the day you decide to ignore this part of your Trading Plan, well that’s a good example of perceiving discipline as a luxury rather than a necessity, because if it truly was necessary to be Disciplined you would have been so.
In its simplest terms, Discipline is about doing what you were supposed to do. One of the most effective ways to get things done is to develop routines. Then over time allow those routines to become habits. Good Trading Discipline is a Habit; it’s a way of being. Once you have developed it will remain with you. Being Disciplined is a way of life, to be a Disciplined Trader you need to be disciplined in general. Lazy people don’t make it.
Good examples of routines\habits of Disciplined\Successful traders include:
- Daily Meditation (Morning and Evening).
- Visualisation Techniques (Before and During Trading).
- Pre-Market Analysis that helps build a clear Trading Plan for the day, together with Visualisations of potential moves before they happen.
- Taking Snapshots of every Trading, marking up entries and exits.
- Keep a Trade Ledger with Daily Trading Results, tracking Average Gains\Losses and Expectancy.
- A Written Trading Journal with notes on Issues, Psychology and General Progress.
All the above is a Necessity and not a luxury for a Disciplined Trader.