With my personal experience I will tell you, nothing is more
important than Discipline. Discipline is one of the essential traits to become
profitable trader.
No matter which strategy you follow, without discipline you can’t
become profitable. If you have most profitable strategy with you, it has good back
test report, then also you will make loss, reason behind the loss is lack of
discipline.
Although it may be tempting to trade impulsively, doing so
will make it harder for you to achieve long-term financial success if you don't
create and adhere to clear-cut trading plans. What's the point of rejecting a
trading strategy if you're still making money? Making an occasional good trade,
even if you through your trading plan out the window, may bring short-term
pleasure, but entering deals haphazardly might have a negative impact on your
ability to maintain discipline in the long run. When you quit following your
trading strategy, you are rewarded for your lack of discipline, and you may
begin to believe that abandoning a trading plan is not a big problem. An
unjustifiable reward may raise your tendency to abandon trade intentions in the
future. You may be prone to thinking, consciously or unconsciously, "I was
rewarded once; perhaps I will be rewarded again." I'll take a
chance." However, the benefits of undisciplined trading are usually
short-lived, and a lack of discipline eventually leads to trading losses.
Unfortunately, many who achieve early success may postpone
an appreciation and dedication to disciplined trading. Early success can give
you a false sense that you are correct, which is not what trading is all about.
Discipline is essential for regular and profitable trading.
Trading is all about making the law of averages work in your favour. One
repeatedly employs established trading tactics in order for the strategies to
make a profit over a number of trades. It's similar like making shot after shot
on the Cricket pitch in order to score a winning number of runs. The more shots
you take, the more probable it is that you will get runs. However, the
successful player is the one who first learns the skill to regularly make the
shot so that the ball is likely to go outside the boundary at every potential
occasion.
To a large extent, consistency is essential. When a player
employs one approach one time and another the next, performance is erratic. The
same is true for trading. Each and every trade must be executed in accordance
with a precise trading plan. This lets the law of averages to work in your
favour, resulting in a profit over the course of the trades. If you stick to
the plan at times but give up it at others, you throw the odds off and are more
likely to lose overall.
Profitability comes with discipline. Don't allow unwarranted
victories interfere with your capacity to remain disciplined. Follow your
trading plan, and reinforce the idea that if you stick to your plan, you will
be more profitable in the long term.
Finally,
“The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading.”
— Victor Sperandeo
Do Read, Our
First Commandment “Do Focus on Managing Risk”
Second Commandment “Don’t Avoid Losses”
Happy Investing & Trading
The ValuePlusOptions Team
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