Trading is a craft that demands a certain level of discipline. Not only do you have to stick to a set of trading rules, you also have to be able to execute your trade as per your rules and trading plan. Market will always test you and any trade your become overconfident market will give a tight slap with a big loss.
Self-Discipline involves the development of a mental framework which enables you to stay motivated and focused amidst conflicts and mistakes.
Self-discipline is NOT a trait that you are born with,It needs to be developed with Grit and Determination, If you have a chance to meet a successful trader you will notice they are highly disciplined and full of positive energy.
Developing discipline is difficult, but it is a necessary and important trait for any trader whose goal is to become consistently profitable.
Now, it isn’t enough to sit in front of the computer every day, take a trade, and hope for the best. You must have a target or a goal in mind. Without any goal in place, you may get stuck in that state of discouragement as you have nothing to strive for or work towards.
Having a specific and tangible goal is the first step towards developing self-discipline, as it will give you the motivation to get through trading each day.
Another good technique to practice self-discipline is to keep a detailed trading journal. I am a strong advocate of having a trade journal because it can provide great insight into your progress towards attaining your goal. It can help you stay motivated and track your progress and lets you know whether you are improving or not.
You will encounter many obstacles and distractions. There will be many times where you will get discouraged and feel like quitting due to series of losses.
Market will always test you, Just like Professional Athlete we need to your desire and must be strong enough to overcome any hurdles that are stopping you.
How to develop self-discipline in trading few points to note
1. Trading Goal
The first step into becoming a more disciplined trader is to set a clear-cut realistic goal. Don’t get too carried away in setting your goals though. Do not think you can double your capital overnight doing trading in Bank Nifty Options.
Goal only needs to have two characteristics:
- It should be clear and realizable.
- It should be realistic and achievable, Make small Goals achieve them on consistent basis.
Examples of reasonable goals could be gunning for a 1% gain each week or maintaining a 60% win rate.
2. Direct your attention to what needs to be done.
After coming up with a clear goal, you are immediately a step closer to becoming more disciplined.
For instance, your goal is to let your winners run and protect your profits at the same time. Keeping this in mind, you’d probably begin putting trailing stops on your trades.
3. Be Positive
There will be days when you get Stop out for 3-4 trades and you might become impulsive and start doing revenge trading, which can lead to even bigger losses. Remember that it’s easy to get lost in the motions of the market.
This is why it’s important for you to have something to hold on to such as your stats in times when minor setbacks force you to doubt yourself.
Trading Journal will be of great help around these times as you can clearly see trades taken and profitable trades you had done. You need to convince your mind this is just 1 off the day and i will get back on track so need of hour is to protect capital not to fight with the market.
If your numbers tell you that you’re actually doing well and you just had an off day in the market, then just shrug of the negative vibes. Worrying about nothing will lead you nowhere!
Keep these in mind and soon, being a disciplined trader come effortlessly because it will already have become a part of your mental framework!