How to maintain discipline
In trading,discipline is one of the key to success.
If you stick to 2% risk rule,you rarely blow up your accounts.
But many still just can not do this simple thing and end up blowing up.
Actually,finding edge is not so difficult.
Even simpleset "buying assets and hold" works in the long run in so many markets,notably SP500.
Just keep disciplined and money comes.
How do you keep disciplined?
Talk your thought here!
Unlearn what you have learned, control the mind, you must. For many years trained to be disciplined, I have and still strive to be discipline.
A trader must have the deepest commitment, the most serious mind. Look to the future, the horizon, a trader should not. Never his mind on where he is, hmmm. Adventure, excitement, a trader craves not these things.
A little help, we need
In front of you, use these tools.
Target the risk area of the brain.
I have a friend who practices kinesiology and suggested I press a certain area of my forehead to help centre myself and limit negative thoughts. I held my thumb and forefinger up like a loser and pressed that against my forehead and that's all I remember which is probably not respectful of her talent, but I digress. Yodas post reminded me of it , and mind control is the key. My discipline control is far more basic...
I still struggle with discipline but I think I'm more like one of Pavlovs dogs ( basic psychology 101 quick google will do). By that I mean I have such an aversion to losing large sums of money and the mental anguish that involves, that although I may still make poor decisions I am far far faster at recognizing them by that sick feeling in the gut and the voice in my head telling me to abort abort. So my discipline is not an active controlled one, but a basic physical reaction one. Profit trade feels good, losing trade feels very very bad. Our experience as traders allows us to develop instinct to the trades we place and hopefully respond accordingly. For me , my aversion to a losing trade is so strong that I now break my trading into 2 distinct fields of play. 1st half = defensive mode getting a trade BE, 2nd half maximise profit. I think something very very primal and basic like fear aversion is actually quite effective for discipline.
Also I'll risk more than 2% because I'm now comfortable with my leverage, at fully loaded I may risk 8-10% total 4-6 trades but that's because I KNOW I will close the trade, sometimes too early even. I think for me I am VERY clear on what I consider appropriate/ acceptable PA and if that doesnt happen I will close the trade
I'll add to that that I am a scalper, I trade with TA and PA, I'm not comfortable with trusting fundamentals, I like to see and act with what is right in front of me. Yoda (I believe) takes a more encompassing view and would be far more tolerant of ranging prices and the flow of equity in his account. I'm very different. I hate negative equity. I'm very immediate.
Discipline is the hardest criminal in the market, it never shows any emotions.
I think the best way to maintain discipline in Forex is by applying proper money management technique. If you decide to use only 1% or 2% of your trading capital on your orders and set proper SL and TP, you won't wipe out your account no matter what.
Indiscipline is to go against rules or incorrect behaviors.
discipline is the reverse.
then you have to be willing to know if you're going to do anything wrong with your standard of discipline,,,before you take any action.
Be patient. Never rush after price and never trade on impulse. Trade based on well-honed analysis and have a trade plan for each trade you take. Of course, trade based on your trading plan.
For me I noticed an improvement when I implemented the following practical steps:
I have a trading system that contain all rules needed for trading written down. From these rules I make a checklist that I check before entry. In addition to the checklist I have a rule that I never intervene in an ongoing trade: It will hit stop loss or take profit.
Example of checklist: https://www.theforexguy.com/real-money-forex-checklist/
In addition I have the psychological part: I only risk 1% so I doesn't care so much about losing a trade.
PLAN YOUR TRADES: i can bet 100$ evry single noob trader that its always losing NEVER plan what he should do, before even open the trading software !! you NEED to have pre-analized the market for the next day/week and just wait for the right conditions to enter, not just tunr off the PC, open the software and start to hunt/force a trade just because (that its soo noob... please stop)
FOLLOW YOUR RULES: the ONLY way to be consistent is if you FOLLOW the same rules/conditions to enter/exit the market.. period; if you dont do it you are random trading with random results every single time until you blow your account (and it WILL happen if you trade like that)
guess what?? the supposed "edge" you have only works if you take it EXACTLY the same everytime !!! (dohh)
oh !!! i forgot, the 1 or 2% rule you wil NEVER EVER going to grow your account to meaningfull levels (unless you have millions already). that "rule" its just a crutch for bad traders that never knows wth its going to happen with their trades once they place them
Patience and discipline can only be achieved when the guideline (plan) itself is not vague ...
Each future trade should have a clear beginning and clear endings ... (EP —> SL / TP)
Step 1.Trade your plan that are written down.
Step 2.Use decent money management.
Of course,do not foget step 0 that find edges and make plans.
Sometimes,I want to be lobotomized so that my emotion just go away...I am just kidding!
I like this notion.
Fear is always there like watchdog.
Then its better to use them positively.
1. find a solid pattern/method that use sell/buy limit order. that way you will get less trigger happy
2. i only risk 5% for each trades. that way i will have to lose 20 times in a row before i blow my account
3. before start analyzing or even opening my trading platform, i will say this sentence to myself:
"losing trade does not matter. what is matter is keeping my cool. i still win if i stay calm even in lost trades, i am already lost even in a winning trade if i get emotional".
Having A trading Journal is something I'd also recommend. I've recently switched from the old fashioned pen and paper Journal to a Trading Journal Program and seeing an improvement. The type that lets you track your strengths/weakness on graphs, simulations etc. I'd really recommend it for anyone seeking to step up to the next level in their trading.
Discipline does not lead to unconditional success. Profitability is achieved by several factors:
- knowledge of market situations and experience
- the ability to control emotions.
- trading system.
It is important to have all the points. Otherwise, you simply begin to disciplinedly lose money.
Btw, there are a lot of helpful information here, thatks to all.
Maintaining discipline in trading is very important . Maintaining discipline can be really hard initially , but some care can definitely help you maintain it. Here are some tips :
First of all set out clear cut, realistic or to be precise SMART goals. Formulate a trading plan to achieve your goals.
Next , avoid emotions while you trade . Emotions can affect your trading negatively and many a times there are chances that you will miss out a good opportunity of making a good profit.
Assume responsibility for what you do. Do not blame destiny as your destiny is in your own hands . You build it with your hard work and skill. Analyze your weaknesses and strengths on a daily basis, learn from your mistakes and you’ll be good to go.
As we know that the Forex market trades 24 hours a day but not all of those hours are feasible for intra day trading and there are certain parameters one considers if you are a day trader like trend, volatility, direction, momentum etc. You also need to decide whether you want to go for scalping or positional trading. Learn to take positions that seem to be the most obvious as they can help to yield profits. Also, draw your attention towards your trading schedule as generally the first three hours of each crucial session are usually the best in terms of trend, momentum etc. One tends to find the best trading opportunities.
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