The Battlefield Of Discipline in Trading
Posted: May 06, 2020
No one knows all. Nobody has all the answers. Knowing that you do not know anything is far wiser than thinking that you know a lot when you really don't. A professional trader knows what he doesn't know, his weakness and make up for it. This ability of a trader to know what he doesn't know and discipline himself to seek knowledge and education for improvement in order to be a better trader not minding the cost is what I called Professional Discipline. It's a known fact that only 3% of readers read a whole book starting from chapter one. Same goes to what is being learnt or taught. The only 3% traders who strive for improvement everyday reach the Youngest Billionaires level. To reach professional level education is the key and the only way. Nothing happens until it is discipline. Indiscipline vision is a chatter vision, indiscipline traders are failed traders. Professional discipline begins with your mind. You have to unclutter your mind from prejudices effect of the market. Direct your focus and attitude on the main thing that is happening not what you think should happen in the market. Strive to be a better trader, work on yourself and attitude.
The common saying by traders and analysts is Plan your trade and trade your plan, yet only few traders stick to this simple rule. The premise of system discipline is your ability to discipline yourself to trade your system, accept the risk and outcome of your trades, win or loss after you have tested the system. The best trading system often seems idiotically simple to some traders who are unaccustomed to this sort of trading. It's the system discipline that espouses your edge after considering available mathematical facts and variables and emotional detachment from the market. Perhaps in the world of trading, no matter how discipline you are, you will experience losers. Your system will fail to generate profit. This is not new; all trading system has drawdown time. Accept and improve on it. Remember failing or losing trade is a step closer to a winning trade. Be strategically discipline and know when things are not working, thus stop. I am no better in this regards or victim of any of the discipline like other behavioral patterns of market participants. Be a wise trader who learns from mistakes of others.
Enemies of Discipline
Fear! Fear is a form of negative or positive instruction from the brain. With fear blood goes to the large skeletal muscles, such as in the legs, making it easier to flee. You want to flee from what you fear because you lack disciple. Fear is an enemy of discipline. Everybody fears one thing or another; Dr Susan Jeffries admitted and says ' As long as I continue to stretch my capabilities, as long as I continue to take risks in making my dreams come true, I am going to experience fear in fact we all fear what we don't understand. This is usually caused by ignorance or lack of understanding. Un-disciplined mind will not be patient to learn what is necessary especially in trading or analyze his fear. Fear is analysed as the greatest enemy of success in life, it's the enemy of traders. Traders have many fears such as fears of losing, fear of missing out, among other fears. This is detailed in the last edition of this magazine. There are other fears known to man such as
Fear of Failure
This is the most prevalent form of fear. All new traders have this form of fear at one point or the other. When a trader loss a trade and experience drawdown in his account beyond what he could imagine, fear gripes him and his interest of trading dwindles, he loses the drives and desire to trade again. He automatically avoids trading. This fear is caused by lack of discipline. You need to learn all you need and move on in the business. You are afraid because you don't want to fail again. Henry Ford was once asked by a journalist about advice he would give to aspiring entrepreneur, he said 'He should double the rate of his failure'. The only way to do that is doing what you afraid of.
Fear of Success
The fear of success comes from not believing that you are destiny to succeed. Earlier in my life, I fear success as undesirable element, as if it's meant for certain people until I had a turnaround in my academic. I struggled to champion a course and I succeed in doing that while those I believe to be smart are no smarter than me either. How in hell am I sabotaging victory myself, robbing myself the joy of success through fear of success? I never realized that I am not doing any good to myself neither my society admitted success as my virtue. The fundamental cause of this is your background and self-belief. Don't rob yourself of success because you deserve it. It's your nature. Everybody deserves to succeed. Stop thinking that the world will expect more from you when you succeed, the world will pay you for what you bargain. On the other hand, fears could be analysed and worked on because it could be a good source of spotting future danger. In this case it should be seen as stepping stone not stopping block.
Khushi is a highly passionate writer, who loves creating an imaginary world with his writings. Business Development Consultant, Strategist, Blogger, Traveller, Motivational Writer & Speaker.