Important Pillars of Trading :Self Control and Discipline

Stock Market  did a one way ride last weeks from low of 7940 till today’s high of 8250. One of the most spectacular rally seen  in small time frame.Last 6 days Nifty has closed in Green. These kinds of rallies have been coming and will be coming for next many many years. But important thing is were you part of this rally,If yes were you on right side ie. Long side.

Most of traders missed the rally or were shorting the whole rally Very few traders were able to milk this rally. What different they have done.

They had Self Control and Discipline over them.

Cultivating discipline and self-control is vital for consistent and profitable trading. You implement proven trading strategies, over and over, so that across a series of trades, the strategies work enough to produce an overall profit. It’s like making shot after shot on the basketball court so as to accumulate a winning number of points. The more shots you take, the more likely you will amass points. But the winning player is the person who first develops the skill to make the shot consistently, so that at every possible opportunity, the ball is likely to go through the basket. To a great extent, consistency is the key. If the player uses one approach one time and a different approach at another time, performance is haphazard.

It’s the same for trading. One must trade consistently, following a specific trading plan on each and every single trade. This allows the law of averages to work in your favor, so that across the series of trades, you will make an overall profit. If you follow the plan sometimes and abandon it at other times, you throw off the probabilities. Suppose you used a strategy that had a track record of 60%. Under the best-case scenario, you could only expect to win 60% of the time. But since history doesn’t always repeat itself, it’s likely that you will win less than 60% of the time. If you don’t execute the trading strategy the same way each time, you will decrease your winning odds. And fewer winning trades may mean an overall loss. That’s why discipline and self-control are so important.

With discipline and self-control comes profitability.

Don’t let unjustified wins interfere with your ability to maintain discipline and self-control. Follow your trading plan, and reinforce the idea that if you follow your plan, you will end up with profits in the long run. If you abandon your trading plan, and get an unjustified win, you may feel good in the short term, but you’ll pay a long term price when it comes to your ability to maintain self-control.

So clearly define your trades and your trading plan (discipline), and stick with your trading plan (self-control). The justified wins you receive from following your plan with help you develop an unwavering pattern of disciplined and controlled trading.

      Do You Trade The Market or Your Emotions?

I am been getting so many mails the day Nifty ga up shall we start shorting , and my only question why do you want to short the market ?

Most generic answer i get is Sir Market itna upar chala gaya aur kitna jayega .Its not you are speaking but your emotions have overpowered you.

Frankly speaking how high market can go no one can tell, but its always advisable not to go against the trend.

13 thoughts on “Important Pillars of Trading :Self Control and Discipline”

  1. Apart from trend, we need to look for reversal sign when market go oversold or over purchased along with future news flow best strategy is bet for trend reversal with protection in case you go wrong. close loosing position even if you have protection. earn your losses through protection.

  2. Always be cautious to take position /take overnight also avoid large position especially before event e.g Greece meeting / series expiry as mkt can take wild swings

  3. Barmesh ji I bought 200 nifty at your view at 7960 nd I hold alls at traling sl whch you give in daily post shuld I book profit at monday or hold for 8300 hundred pls awn me

  4. Once 1 tgt is done SL is Cost price.

    Trade with only 9 qty for 1 month and once you master the strategy do with large qty.


  5. Sir, As you are giving three targets for each stock then how to book profits.. we have to make three equal quantities of the bought/sold quantity..In that case if stock reverses after the first target and hit the stop loss, then 2/3 quantity will get hit the stop loss..Can you please explain about this in detail.. as I am losing money and simply waiting for the targets..
    God bless you sir..

  6. This is the funda all of us shud overcome… i.e going against the trend… and this take lot of patience and self control to follow… Great write up Bramesh ji.

  7. Sir during training i learned , specific % returns r gained on the capital then sit quite & enjoy watching market. I follow same as i am disciplined trader , learned in training.

  8. Hi Bramesh

    I Entered Nifty at around 8000 and exited at 8210 today, BNF Entered at 17525 , exited at 17710 , wanted to hold with trailing stop loss , but got impatient as BNF was not moving as expected, it closed at 17900 odd.


  9. Is it always mandatory to be in trade all the time ? You made money why you cannot sit out of the market for few days and consolidate ur gains .


  10. Sir I bought Nifty around 7960 levels and existed at 8225 , Yesterday I read in your post Trendline resistance also comes at 8239/8254 , I shorted Nifty around 8245 and is carried over night ,

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